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Which of the following will not be included in Liability-
Bank overdraft
Bank balance
Capital
Loan
Bank Balance is an asset as it determines the amount the proprietor keeps in bank for use in future.
By: NIHARIKA WALIA ProfileResourcesReport error
aswin k venu
how is capital a liability
Capital is money invested by owner in the business, whole accounting is done from the point of view business(as owner and business are treated separate), so capital is treated as loan by owner to business & hence liability.
Pradeep Singh Dumaga
Then please explain how capital can be included in Liability
Capital is a liability of the organization towards the owner. As per the business entity concept business and entrepreneur are different thus whatever money he invests in the business is to be paid back to him some day. Hence, it can be treated as a liability towards the owners
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