why share capital shown in liability side of a balance sheet
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Answer / jeetu
because it is a liabilty to be paid by Company to share
holder that's why it shown in liabilty side of balance
sheet. i could clearify more but its difficult to write
cause my english is not so good
| Is This Answer Correct ? | 99 Yes | 19 No |
Answer / waqar hussain
becase share capital is the amount which is invested by
general public for the purpose of earning profit so it is
the part of equity and are shown in liablity side of the
balance sheet because Assets= liability and owner,s equity.
| Is This Answer Correct ? | 31 Yes | 3 No |
Answer / aurosnigdha bose
After getting company incorporated,it requires capital.so a
company issues share to raise funds.So public invest their
money n they become d shareholder of that company.so it is
outsider's capital.so it is shown in the liability side of
balance sheet
| Is This Answer Correct ? | 16 Yes | 3 No |
Answer / satyabrata mohapatra
According to BUSINESS ENTITY Concept , Owners and Business
are to separate entity,thats why when fund is collected by
Issue of share by the company ,that amount collected from
share holders are not Companies own capital ,this amount has
to be refund to there respective share holder at the time of
liquidation , thats why Share capital is a Libility and show
in Libility side of balance sheet but in form of Share capital.
my self - satya
ph .no-09090189864
| Is This Answer Correct ? | 12 Yes | 1 No |
Answer / amit
it must be on liabilities side of balance sheet because we are liable to pay this amount ......when business dissolved
we are liable to pay this amount to public.....so it appears on balance sheet
| Is This Answer Correct ? | 7 Yes | 2 No |
Answer / sitaram sawant
share capital is basically capital contributed from public
and they hv share on that particular company to the extent
capital contributed by them. it's not company's own
capital, it contribution from public or partners. that why
it is come under liability side
| Is This Answer Correct ? | 19 Yes | 15 No |
Answer / gurumoorthy
Because, the share capital shows credit balance.
Accounts showing credit balances must come under the
liablities side of the balance sheet.
| Is This Answer Correct ? | 42 Yes | 39 No |
Answer / n.laksmi narayanan
share capital is shown in liability side because it ia
outsiders capital (ie) the capital collected from the
public and other institutions or banks, and the company
need to repay the money borrowed (ie credit) so obivisously
it should be shown in liability side
| Is This Answer Correct ? | 7 Yes | 4 No |
Answer / liya
Its just because of Business entity concept,Business is
considered as another legal person..who are liable to pay
the amount back to the owners or to the share holders that
who hold the shares.....
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / ravi sekhar
Share capital is fund created by some group of persons to
start business and to share the profits on proportionate to
their investment and their share can be transferable to any
person,and one more accounting priciple is credit whata
ever comes in and debit what ever goes out, hence the
share capital is shoen as a liability
| Is This Answer Correct ? | 6 Yes | 4 No |
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