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why share capital shown in liability side of a balance sheet
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Answer Posted / satyabrata mohapatra
According to BUSINESS ENTITY Concept , Owners and Business
are to separate entity,thats why when fund is collected by
Issue of share by the company ,that amount collected from
share holders are not Companies own capital ,this amount has
to be refund to there respective share holder at the time of
liquidation , thats why Share capital is a Libility and show
in Libility side of balance sheet but in form of Share capital.
my self - satya
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