Why Capital is Posted in the credit side? Concept of it
briefly .
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Answer / sallu
business receives capital from business person, so the person is the creditor of business and the capital so received is the liability of business, thats why it is credited in the liability side of the balance sheet.
| Is This Answer Correct ? | 13 Yes | 3 No |
Answer / nadhiya
Debit the receiver. Credit the giver. So this rules
applicable for Capital A/c. Capital received from owner so
capital a/c is Cr.
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / barodianbuddy(acca)
CAPITAL IS POSTED ON JOURNAL ON CREDIT SIDE AS OWNER IS CREDITOR TO BUSINESS DUE TO HIS INVESTMENT. ITS SHOWN IN STATEMENT OF FINANCIAL POSITION ON LIABILITY SIDE UNDER EQUITY SECTION AS SHARE CAPITAL OR EQUITY ACCORDING TO IAS 1.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / raju
Company owe money from the owner so,that the owner is creditor of company so capital is liability to the company that is why its posted on credit side
| Is This Answer Correct ? | 1 Yes | 1 No |
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