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capital is a assets but its shows in liability side. why?
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Answer Posted / abdul hannan
as the promoters of the co, and co. is different from each
other the amount invested by the promoters to start the
company is trated as liability, since the co. is different
from its owners it treats the funds used to start the co.
as amount borrowed or capital borrowed which has to b
repaid. so it is shown on the liability side...
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