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

Answer Posted / ali

Capital is not a liability nor its an asset. It is shown
under owners equity section of the balance sheet. Also
capital will be in the form of say, cash or building and
they will be on the asset side therefore under double entry
concept the other side will be credit. If you dont believe
me then go to any public company web site and take a look at
their balance sheet. By the way net profit is also not a
liability its shown as retained earning on the equity section.

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