why capital is shown on the liability side of balance sheet .
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Capital
Replies (3)
DKSH,
Capital is on the Liability side as per the Accounting Entity Concept/Separate Entity Concept
DKSH,
Capital is on the Liability side as per the Accounting Entity Concept/Separate Entity Concept
As Sumit said above, the person lending money as capital and entity utilising such money are two different persons. It is an obligation on the part of the entity. Hence it is considered as Liability.
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