Can the owner's equity be negative

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Gaurav Srivastava (Querist)
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04 December 2015 Hi

Anyone please confirm me whether owner's equity can be negative in the balance sheet or not?

Thanks in advance

CA R SEETHARAMAN (Expert)
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04 December 2015 It can be negative if there is loss in business more than the capital invested.

Ankur (Expert)
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04 December 2015 yes it is possible if business make a loss.

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