16 March 2012
HELLO FRIENDS!!!! I have got a query regarding "SINGLE ENTRY SYSTEM",.....Why is opening and closing capital account taken into consideration while calculating the "STATEMENT OF PROFIT OR LOSS",is there any relationship between profit or loss and the CAPITAL A/C.........(if i am not wrong),then CAPITAL A/C'S are just maintained to know the extent of liability of a business concern towards the owner....then why is that taken into cosideration? please explain.... -thanking in advance!!!!