Capital is the amount contributed by company's owners toward company that's why it is a liability of company to payback on occasion of dissolution that;s why it is treated as owner's equity and comes under liability side of balance sheet and not as an asset of company.
Building is an asset of business by utilizing which company earns revenue to pay all liabilities and owner's capital.
Cash is an asset. It could also be part of what makes up an owner's equity.
Credit Decreases an Asset and Debit decreases Owners Equity.
asset
Beacuse assets are increase the wporking capital and we can easily converted them int cash and hence increase the owners equity.
Building is an asset of business by utilizing which company earns revenue to pay all liabilities and owner's capital.
Cash is an asset. It could also be part of what makes up an owner's equity.
Credit Decreases an Asset and Debit decreases Owners Equity.
asset
Beacuse assets are increase the wporking capital and we can easily converted them int cash and hence increase the owners equity.
asset liability
Sales is generally considered "Revenue" or "Income" and therefore are an Owners Equity Account. Sales affect Retained Earnings and Retained Earnings affects Owners Equity.
The recording of a profitable transaction will increase an asset and increase owners equity such as the sale of a product: Either Cash or Accounts Receivable would increase; and Current Profit increases (which is included in owners equity).
Example of journal entries are as follows: 1 - Start of business [Debit] Cash /bank / goods [Credit] owners equity 2 - Purchase of asset [Debit] Asset account [Credit] Cash / bank 3 - Increase of capital [Debit] Cash / bank [Credit] Owners equity 4 - Decrease in capital [Debit] Treasury Stock [Credit] Cash / bank
Investment from factory owners is equity and it is shown in balance sheet of business.
no owners capital is not an asset its an internal liability for the company
no owners capital is not an asset its an internal liability for the company