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why are capital account shown in liabilities side what is
meaning of capital account in balance sheet

Answers were Sorted based on User's Feedback



why are capital account shown in liabilities side what is meaning of capital account in balance sh..

Answer / aditya k shrivastava ,indore

As per accounting principal bussiness and business man both
are have saprete entity.A business man start his business
with capital(cash,material or other thing. this capital is
a as loan(laibility) for a business.so capital is shown
laibilities side in B/s

Is This Answer Correct ?    35 Yes 2 No

why are capital account shown in liabilities side what is meaning of capital account in balance sh..

Answer / savithri

When we startup business we have to open a a/c in bank
like OD, OCC or we have to deposit amt from our personal
a/c. bank OD R OCC is shortterm loan or longterm loan. All
bank term loan coming under liabilities a/c. so it is in
liabilities side of b/s.

Is This Answer Correct ?    3 Yes 12 No

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