Capital is asset of the company. But why does it appear in
Liability side of the balance sheet.

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



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

what are the type of cash flows?

2284


Dear Sir, My qus is my co. purchase a laptop from Abc.co. for rs-37200 on credit Emi basis from hdfc bank. i paid every month 6200rs as a installment. so i want to know how i make a entry in tally 9. and also want to know i creat laptop ledger under fixed assets or office expenses. plz tel me soon.or mail me .

1628


Expand MNS

1694


Iam selected for final round of interview in IDBI bank for asst. manager post. Can any one help me in knowing what kind of questions will be asked in the interview and how should i prepair?

1585


What is DRA in bank reconciliation.

1488






define drawer or maker

3769


post pscwb question and answer for accounting paper I & II for govt.officers departmental examination.

2188


ER-1, ER-2,ER-3,ER-4,ER-5,ER-6,ER-7 plz tell me use of these excise form

1366


Short Answer on _________Accounts Receivable

1456


sir,how to get strong position in finance .how to get good position in company. qulification.Msc,MBA

1697


Rs. 23.50 ( Rupes twenty three & paise fifty only) what is euro Conversion?

1641


Data flow of Accounts payable to General ledger?

1247


Can u please give me example of bonds? is National savings certificate a Bond?

2372


What is Trade Recovery Estimate and how can we calculate it?

1509


Workers name-Madhu Saha.Pay structure,basic-5850,HRA-1350,CCA-900,TRAV.ALLOW.900.DEDUCTION-PF-702.ESI-150,P.TAX-90.WHAT IS THE EXTRACT IN PF,ESI,IN BALANCE SHEET & sALARY IN p/l A/C . iS IT POSSIBLE THAT PERSONS'S NAME SHOUL COME I P/L

1997