Question

Why are the rules of the debit and credit same for both liability and capital?

Answer 1

The rules of debit and credit are same for both liability and capital because capital is also considered as liability with the view point of business, In accounting, there is a concept, according to which business and businessman, both are separate and whatever is invested by the owner of a firm in that film is also treated as liability and shown in liability side of the balance sheet after adding to the owner's capital.