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Capital is liabilities for business how? …

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Capital is liabilities for business how? Explain with the help of principle.

    • Posted by Pranav Singh 8 years, 3 months ago

    CBSE > Class 11 > Accountancy
    • 1 answers

    Manish Gandhi 8 years, 3 months ago

    Capital is liability for business as owner is creditor of business. 

    this can be explain with the help of business entity principle. This principle says, business is a seprate entity from its owner, it has its own accounts and legal existence, one can not mixup owner's and business's transactions.

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