why capital is a liability ?

Answer Posted / binoy

Capital is a contibution by the shareholders. So the
company owes the shareholders. Hence, it is shown as an
liability

Is This Answer Correct ?    12 Yes 8 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What are accounting entities?

595


How does accounting contribute to the community?

616


what is consignment entry?

1784


purchase of Rs 1000 were rejected and returned,however vendor returned Rs 800 and balance Rs 200 is charged to sundry exp A/c

4043


Explain me what is assets minus liabilities?

575






PROVIDENT FUND TO BE CALCULATED ON BASIC AFTER DEDUCTION OF ABSENTS (LOP)

1535


What Is Responsibility Accounting?

691


x pay incentive to y with tds@10%.what is the journal entry in the books of x & y?

1655


What information is included in a bill for services?

572


As you know excellent communication skills are at the core of this position. Do you have experience with interpersonal communication in a professional setting?

585


What is partnership accounting?

605


What do you mean by gaap in accounting?

604


in insolvency we have to prepare deficiency account but why we do not prepare this account as per general principle i.e Dr Cr To By etc , and deficiency account is which account?

4582


Tell us what kind of work environment do you prefer?

569


when the ABC's personal bank to to his business bank money transferred(paid) then how to pass the entry.

1459