Capital is asset of the company. But why does it appear in
Liability side of the balance sheet.
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Answer Posted / rakesh kadiri
capital is asset to the company as and when liquidity is
required it will be available to use it but why it appears
in the liability means at the time of the formation of the
company initial investment has to be made by the director
of the company so at the time of formation of the company
at any cost it should be liability to the company so it
would appear in the liability side of balance sheet.
| Is This Answer Correct ? | 17 Yes | 14 No |
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