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Answer Posted / supriya dasari
According to Companies Act, 1956:-
Company is a separate legal entity and it has its own assets
& liabilities in its nature.So Owner is different from the
company. Both are different personalities in the eyes of the
law.
So, from the above Act, The capital is borrowed from the
owner in to the company. So company is liable to repay that
capital and interest on capital based on agreement(if it is
partnership firm) or prospectus of the company.
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