Question

Capital is shown on the liability side because of :

Answer 1

*⃣ HEYA *⃣

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Similarly, in any business, capital account is shown on liability side because it is buisness' liability to pay back capital amount to owner. Generally, you may have a doubt that why capital is recorded on the liabilities side of balance sheet. This is because of Business Entity concept.... ✔️

‼️ with regards... ‼️

Answer 2

HEY ,

U R ANSWER ♠.

CAPITAL IS THE AMMOUNT CONTRIBUTE BY A PARTNER TO CARRY OUT THE BUSINESS.

SINCE CAPITAL IS BELONG TO THE OWNER, AND RESPONSIBILITY OF BUSINESS TO PAY BACK CAPITAL TO THE WHEN BUSINESS IS WINDED UP.

HENCE , CAPITAL IS A LIABILITY OF THE BUSINESS.