Interested to Buy Any Domain ? << Click Here >> for more details...
Capital is asset of the company. But why does it appear in
Liability side of the balance sheet.
- 19 Answers
- 22023 Views
- JPMorgan Chase, I also Faced
- E-Mail Answers
Answer Posted / aparna reddy
CAPITAL IS THE INITIAL INVESTMENT BROUGHT FROM PUBLIC WHO
BECOME SHAREHOLDERS AFTER PURCHASING SHARES IN THE FORM OF
UNITS.THESE SHAREHOLDERS CONTRIBUTE FUNDS/MONEY TO THE
COMPANY WHICH BECOMES CAPITAL TO COMPANY.
AND THE COMPANY OWES TO ITS SHAREHOLDERS FOR THE MONEY THEY
HAVE FUNDED.
AS IT IS OWING ,THIS BECOMES AN OBLIGATION TO PAY FOR
COMPANY TO SHAREHOLDERS.ANY OBLIGATION TO PAY IS LIABILITY
HENCE WE TREAT CAPITAL AS LIABILITY
| Is This Answer Correct ? | 3 Yes | 1 No |
Post New Answer View All Answers
why are you selecting for the profitbulity analysis costing based& active based
my boss (Managing Partner of a firm) promoted along with his wife a private limited company. he and she spent some Rs. 75,000/- (approx) for the promotion of the company. i know that they usually fall under the head of preliminary expenses. but after receiving the certification of incorporation of the company how shall i repay them to the promoters i.e. what is the accounting entry in the books (initial books of accounts) for the expenditure incurred. they have kept in hand 5,00,000/- each to meet the expenses and they were allotted shares of equal to the amount. can i allot shares for a consideration of cash from and excluding the preliminary expenses. can i take cash towards the share application money (being the cash more than Rs. 20,000/-) as the company has not opened a bank account yet. please give me the detailed answer with journal entries that can be entered in tally. thank you.
I've just started to work as an accounts executive and intending to take up SAP. Can anyone tell me what are the preparations required for me as an accountant to be a successful SAP consultant.
We can add the no. of increase in shares due to exercise of the options.Why diluted eps is calculated separatey?
what is the reason for balance sheet not getting tallyed
i am called for interview but im getting confused wt sort of questions i wd have to face,its a bank job and post is cash ofiicer please help me.
What is the working formula for Working Capital Turnover
How goodwill is accounted for the first time in a company .
If income and expense both are equal then what it depicts
Sir i am working in 3 star hotel as a senior accountant i need some general letter drafts pleas do the need ful
what is sevice tax? on what service tax is applicable. explain with examples?
whether unsecured loans written off can be transferred directly to capital reserve without crediting it to profit and loss account
why should we are preparing BRS
difference betwwen the 4.6 & 4.7 ecc versions
sort out the difference between service provider & service reciepient from the service tax.
