Question

What are the items to be added and subtracted from capital on the liabilities side of the
account?​

Answer 1

Answer:

 The Items are added with capital are :

• Net Profit

 The items are substracted from Capital are :

• Net loss

• Drawings

• Interest on drawings

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Balance sheet :

Balance sheet is statement of assets and liabilities of a business prepared with a view to business ascertain the financial position of the business as on particular date.