Negative capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2013 SIR

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.

THANKS & RGDS

MUKESH KUMAR

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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09 September 2013 capital mostly never goes -ve.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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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.

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