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Based on which of the following concepts is share capital account...

This question belongs to Commerce Accounting
Accounting
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Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

Answer & Solution
Correct Answer: Option A
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).
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Mohd Mudassir
Mohd Mudassir 6 years ago
Reference:G R Bhatla publication Pvt Ltd
Meerut ( u.p)
Written by : kavita gupta &vinit misra
Lesson : 2. Page: 15
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