Why is Capital account always given a credited, or why is capital considered as a liability. Please correct me if I am wrong.
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According to business entity concept owner and the legal business entity are seperate from each other. so at the time of winding up the business entity have to repay the amount of capital invested by the owner. The accounting records are made in the books of accounts from the points of views of business units and not that of the owner. The personal assets and liabilities of the owner are not considered while recording assets and liabilities of business. The owner is treated as creditor to the extend of capital.
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