18 October 2007
In the balance sheet of the Sole Proprietorship business, capital contributed to it by the proprietor can not come under the Asset side of the business as per accounting convention, for that is not the asset of that business but capital received from the proprietor.
In the balance sheet of the proprietor, the capital contributed by him to that business can be shown as asset.
18 October 2007
A Negative Capital can be a part of the Asset Side but that means that you are withdrawing Excess from your business and there are no Profits in the business.
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