Based on which of the following concepts is share capital account shown on the liability side of a b...........

Accountancy (Phase -I & II) Accounting for Shares

Download Solution PDF

Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

Business entity concept

Money measurement concept

Cost concept

Going concern concept

छोटे Courses बड़े Results

Master Accounting for Shares

Prepare through Micro-courses

Try Now

Explanation:

The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. Based on Business entity concept, share capital account shown on the liability side of a balance sheet. The business entity concept also explains why owners' equity appears on the liability side of a balance sheet (i.e. credit side).