Question

capital is shown under liabilities because of the
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Answer 1

Explanation:

According to Separate Entity Accounting Concept, the Owner and the business that he is doing are two separate person altogether. ... This is the reason the Capital Account is shown on the liability side, because the business (one entity) is using the resources of the owner (one entity) and deriving benefits for the itself.

Answer 2

Answer:

Capital is shown in the liabilities side of balance sheet as it is a liability for the business/company/partnership firm.Capital is amount invested by the owner,which the business has to pay back to the owner after a period of time so the capital becomes a liability of the business.

Hope it will be help you