Capital A/c

This query is : Resolved 

05 June 2009 Why is capital written on liability side of balance sheet?
is it our liability ?
Specific ans with reasons

06 June 2009 The concept of "Capital" comes from business entity concept,wherein it is specified that the business and the businessman are two seperate entities from accounting point of view.Accordingly the amount invested by the businessman into business is considered as liabilty from the business point of view.As investment made by the businessman into business is called as "Capital",and since it is liabilty it is shown in the liability side.

06 June 2009 agree




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