Capital
It is amount invested in the business by its owners. It may be in the form of cash,goods,or any other asset which the proprietor or partners of business invest in the businessactivity. Frombusiness point of view, capital of owners is a liability which is to be settledonly in the event of closureor transfer of the business. Hence, it is not classified as a normalliability. For corporate bodies, capitalis normally represented as share capital.