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Additional Paid-in Capital is a normal credit balance account.
No
Paid in capital is the liability for business and like all other liabilities it also has credit balance as normal balance
Paid in capital is liability for business and like all liabilities it also has credit balance as normal balance.
All kind of capital is related to and shown under equity section of balance sheet.
Additional Paid-in Capital is a normal credit balance account.
No
Paid in capital is the liability for business and like all other liabilities it also has credit balance as normal balance
Paid in capital is liability for business and like all liabilities it also has credit balance as normal balance.
All kind of capital is related to and shown under equity section of balance sheet.
Additional paid in capital (or APIC) is a component of the shareholders equity section of the balance sheet. Retained earnings is a separate component of shareholders equity.
When there is loss in the business the capital of partner can be in negative. Then there is need for addition of capital to run the business and capital brought can still be not enough to make it in credit. Hence the capital will still show a debit balance. However, Additional Paid-In Capital as an account has meaning only for the corporate form of business. Any amount paid by an investor for stock in excess of the stock's par value is recorded as Additional Paid-In Capital. Additional investments by partners may be recorded as contributions in the current period, but are then, like partner draws, closed to the partner's capital account.
Additional paid in capital is also part of paid in capital of business and shown as an addition to already exists paid in capital of business.
additional paid in capital
Additional paid in capital is an asset to a business. If this type of capital has to be paid back to a financial institution, then it will also become an accounts payable or liability.
Yes
Credit