Question

Why is capital amount put in liabilities and not in assets?

Answer 1

Capital is the Liability of the business as it invest by the owner of the business at the time of its starting.

Whenever invest by the owner in business is Liability of business because business own invest that money and amt is not come in business from anywhere to start business..

Hence it is a Liability and not an asset

Answer 2

In the accounting business and business man are two different things . Capital invested in the business is coming in therefore it is shown on the liability side of the balance sheet