Question

capital is a liability for the business . explain this statement with the principle applied ​

Answer 1

Answer:

According to Accounting Entity or Business Entity Principle capital is a liability for the business . This principle requires that for accounting purpose , a distinction should be made between business affairs and personal affaired and in the accounting books of the business only business transaction be recorded

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Answer 2

Answer:

capital is a liability

acc to seprate bussiness entity concept. it is thought that our bussiness is different from propertier andcapital introduced by him is liability for us