Suppose a person starts a business.
He brings 40000 Cash and 60000 Furniture into Business
In this case,
Capital is money introduced by a person into business i.e.Rs 100000
For the business,it is a liability as it has to be paid back to the person
Also Cash and Furniture are Assets or property of business of 40000 and 60000 respectively
Total Assets of Business=40000+6000=100000
Total Liability of Business=Capital Introduced=100000
Total Assets=Total Liability
Teachoo is free. Login to view more pages.
Login with facebook
Login with gmail
On signing up you are confirming that you have read and agree to
Terms of Service