PLEASE LET ME KNOW CAN IT IS POSSIBLE THAT CAPITAL GOES NEGATIVE IN PRO.SHIP FIRM AND IF YES THAN HOW IT COULD BE POSITIVE WHEN F.Y PERIOD IS ALREADY GONE.
09 September 2013
The negative amount of owner’s fund also means that the firm's balance sheet will report liability amounts greater than the amount of assets. The Firm could operate under those conditions if its assets are turning to cash before the liabilities need to be paid.