Capital is asset of the company. But why does it appear in
Liability side of the balance sheet.
Answer Posted / aparna reddy
CAPITAL IS THE INITIAL INVESTMENT BROUGHT FROM PUBLIC WHO
BECOME SHAREHOLDERS AFTER PURCHASING SHARES IN THE FORM OF
UNITS.THESE SHAREHOLDERS CONTRIBUTE FUNDS/MONEY TO THE
COMPANY WHICH BECOMES CAPITAL TO COMPANY.
AND THE COMPANY OWES TO ITS SHAREHOLDERS FOR THE MONEY THEY
HAVE FUNDED.
AS IT IS OWING ,THIS BECOMES AN OBLIGATION TO PAY FOR
COMPANY TO SHAREHOLDERS.ANY OBLIGATION TO PAY IS LIABILITY
HENCE WE TREAT CAPITAL AS LIABILITY
Is This Answer Correct ? | 3 Yes | 1 No |
Post New Answer View All Answers
DESCIBE EXPORT PROCEDURE
what is data entry? what is report generation ?in accounting how it is used .
Expand-------BANT
business sepsarate entity concepts
What is Going Concern, What is Dual Entry , What is Business entity and what are the names of Stock exchanges and currency of some countries, stock market related questions, Exchange rates, Banks and other informations
how to pass journal entry or where to show forein transaction reserv in Bal sheet. pls explain basic
WHAT IS BANK RECONCILIATION STATEMENT? DIFFERENCE BET PUBLIC COMPANY AND PRIVATE COMPANY? MEMBERS IN PUBLIC CO AND PRIVATE COMPANY? WHAT IS DEPRECIATION?
What is Insider Trading ?
what is mean by T and E cosept
what is Rectification of Errors ?
1. Cold Ice, Inc. sells ice cream sells for $2 each. The variable costs per ice cream are $1 and the fixed overheard costs are $ 0.35. A summer camp wants to place a one-time order for 100 cone of ice cream at a price of $ 1.25 each. What is the minimum price hot dogs should be charge for this special order?
What is Risk Assessment?
what do u mean by single error and double error in accointing errors?
What do you define in customizing for the payment program? FBZP (Any 2 Answer) • Bank subaccount ( BANK DETRMINATION SCREEN. ACCOUNTS) • Forms of the payment media ( PAYING COMPANY CODE) • Available amount (BANK DETERMINATION, AMOUNTS) • Assignments for the profit center • Prerequisites for the debit balance check
Suppose the production is more and sales less then what will happen