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Capital is asset of the company. But why does it appear in
Liability side of the balance sheet.
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Answer Posted / arun kumar.m
According to the Business Entity Concept Owner is separated
from the Business activities, so that capital is invested
by the owner(Founder) in business point of view capital is
liability for business Firm and Owner's point of view
Capital is Asset(investsment).
| Is This Answer Correct ? | 14 Yes | 0 No |
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