Accountancy, asked by iamkhushiarora920, 7 months ago

Capital is an internal or external liability? State with reason.

Answers

Answered by saidalihabeebkkm123
0

Answer:

Firstly, Internal Liabilities means the liability of business towards it's owners, i.e. balance in the capital account. External Liabilities means what a business owes to outsiders like bank loan , creditors and debentures etc. Secondly, Capital is the money contributed by owners or shareholders to the firm.

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