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share capital
why share capital show in liability side?
Replies (3)
Being libility of business, to be owed to investor
Share capital is not of business rather it is for business given by shareholder , that means shareholder invested money in business and at the end the same will be given back to shareholder so that it's a liability of business.
simply sources of fund to the business is
1. from owners
2. from outers
in your query owners fund is share capital. so it is to be settle to the share holders like liability members
1. from owners
2. from outers
in your query owners fund is share capital. so it is to be settle to the share holders like liability members
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