Negative capital
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 September 2013
SIR
PLEASE LET ME KNOW CAN IT IS POSSIBLE THAT CAPITAL GOES NEGATIVE IN PRO.SHIP FIRM AND IF YES THAN HOW IT COULD BE POSITIVE WHEN F.Y PERIOD IS ALREADY GONE.
THANKS & RGDS
MUKESH KUMAR
PLEASE LET ME KNOW CAN IT IS POSSIBLE THAT CAPITAL GOES NEGATIVE IN PRO.SHIP FIRM AND IF YES THAN HOW IT COULD BE POSITIVE WHEN F.Y PERIOD IS ALREADY GONE.
THANKS & RGDS
MUKESH KUMAR
09 September 2013
capital mostly never goes -ve.
CA Pallav Singhania
(Expert)
09 September 2013
The negative amount of owner’s fund also means that the firm's balance sheet will report liability amounts greater than the amount of assets.
The Firm could operate under those conditions if its assets are turning to cash before the liabilities need to be paid.
The Firm could operate under those conditions if its assets are turning to cash before the liabilities need to be paid.
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