Question

Why are rules of debit and credit same for liability and capital?

Answer 1

Explanation:

Rules of debit and credit is same for both liabilities and capital due to the business entity concept , business is seperate from its member and its owner , therefore, Owners capital is also treated as outside liability for the business . Thus , the rule for the debit and credit of capital is same as that of liabilities .

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Answer 2

Answer:because capital is a kind of internal liability for entity

Explanation: