Please Explain
1- What is Capital?
2- What is paid up capital?
3- What is the meaning of Capital a/c in Balance sheet(liabilities)
E.g. XYZ Company has two partners, where the capital is 21 lakhs, both are 50%-50% partner.
X has invested 2lakhs initially and Y has invested 0.00, X is a active partner and Y is inactive, but now X has a capital 9 lakhs, and Y has 12 lakhs,
In short: Company has Fixed Asset 10 Lakhs, and Receivables 50 Lakhs, and payable 45 lakhs,
Now X want to remove Y, but Y demanding 12 lakhs, stating that he has a capital balance 12 lakhs,
Can u explained how X will come out from this. is he/company is liable to pay 12 lakhs to Y?
Regards
CAclubindia
