Why capital is shown i the liabelitiy side of the Balance Sheet?

Question

Accepted Answer

Capital is shown on the liability side of the Balance Sheet to represent the owner's claim on the assets of the business.

Capital represents the owner's investment in the business and is considered a liability because the business owes this amount to the owner.
It is shown on the liability side to balance the equation: Assets = Liabilities + Owner's Equity.
Capital is used to calculate the net worth of the business and is crucial for determining the financial health of the company.
Examples of capital include owner's contributions, retained earnings, and profits reinvested back into the business.

Accepted Answer

As per business entity concept, we treat owner and organization are two different aspects 
We always prepare our financial statements in behalf of organization.
That way - when the owner brought the capital, it will be treated as liability to organization. As organization owes that capital portion.

Why capital is shown i the liabelitiy side of the Balance Sheet?

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