Capital is a liability for the business but why is it not transferred to liability account
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Answered by
3
Answer:
capital is shown on the liability side of balance sheet
it is the liability towards owner's
Explanation:
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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
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