Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Why capital a/c shown in b/s in case of individual

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2013 Dear Friends,
In a business b/s, capital a/c is shown under the liablities head becoz of the concept that business and businessman are different, but while in some cases we have to make the b/s in case of individual, why capital a/c is shown under liablities head, its personal b/s, so its personal money, which it is shown under liablities.

Thanks & Regards,
Rajat Goyal

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

07 August 2013 Because as the money is personal and not of business the entity has taken a loan from propritor in the form of capital and it is liable to be paid by entity to the business man personally that is y.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now