Why are rules of both credit and debit same for capital and liability?
Answers
Answered by
5
Answer:
The rules of debit and credit are same for both liability and capital because capital is also considered as liability with the view point of business, In accounting, there is a concept, according to which business and businessman, both are separate and whatever is invested by the owner of a firm in that film is also.
Explanation:
Rules of Credits by Account
Opposite to debits, the “credit rule” state that all accounts that normally contain a credit balance will increase in amount when a credit is added to them and reduce when a debit is added to them. The types of accounts to which this rule applies are liabilities, equity, and income.
Kindly give some thanks please..❤️
Similar questions
Business Studies,
2 months ago
Science,
2 months ago
Science,
4 months ago
Math,
4 months ago
Science,
10 months ago
Math,
10 months ago
Computer Science,
10 months ago