Accountancy, asked by ragiribhavyasre6068, 11 months ago

Capital is a liability for the business but why is it not transferred to liability account

Answers

Answered by shubhbansal08
3

Answer:

capital is shown on the liability side of balance sheet

it is the liability towards owner's

Explanation:

plz Mark as brainliast

follow me for best answer

hope it helps

Answered by rajkumarprasad7599
5

Answer:

Hey mate here is your answer

Explanation:

This is because of Business Entity concept. ... If capital is invested by the owner, it means business owes money to owner, as he is treated as separate person from the business. So, that's why we record capital on the liabilities side.

Hope it's helpful for you

Similar questions