why should be mention capital in liabilities side
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Answer / suresh
Business entity concept: It is one of the main accounting
principle of accounting this concept says that Business
should be treated seperately from the properitor or investor
In simple words owner of the business should be treately
sepreatly from the business what ever profits come in to
the business should be taken in company account.
that why capital in liabilities side.
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Answer / ram
As per the business entity concept owner is seperated from
the business. so capital is shown as a liability
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / mayur sitaram mestry
because capital is not a asset for a company its a libilities for a propewriter.
| Is This Answer Correct ? | 1 Yes | 3 No |
Answer / amit jain
because assets = capital + Liabilities
that is why capital is shown as liability side
| Is This Answer Correct ? | 0 Yes | 3 No |
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I M DIVISIONAL ACCOUNTANT. POSTED IN TAMILNADU. MY NATIVE STATE IS BIHAR. I WANT TO KNOW, WHAT R THE RULES OF CADRE TRANSFER. I M FACEING HERE SOME PROBLEMS
Manoj & Mahavir joined a firm drawing salary of Rs 25000 per month.After serving 3 yrs ,they started business of their own in partnership,contributing Rs200000(expected life 10 yrs,bought spare parts worth Rs 33000 from Kundu on credit.Office supplies were purchased for cash.Initially they were very busy in conducting their business operations but by the end of the 1st year,31/12/2005 they were disappointed when they found their bank balances.Following is the summary of their bank statement. Receipts: Share Capital Rs 250000 Collections from Customers 412000 Payments: Equipment 200000 Salaries of Assistants 88000 Rent advance for 2 yrs 96000 On-year ins. Policy on equipment 12000 Office stationery 27000 Payment to Kundu 29000 Withdrawals of Manoj 90000 Withdrawals of Mahavir 90000 Closing balance c/d 30000 ----------- Total : 6,62,000 Still amount receivable from customers for services to them amounted to Rs 30,000 & closing balance of office stationery is Rs2000,spare parts Rs2600 were utilised by the end of the year .Prepare trial balance with the available information and show total. Also what is the net profit.
Audit 
