tag:blogger.com,1999:blog-3065238051582539150.post3308178169245384860..comments2024-03-27T18:38:06.024+05:30Comments on Svtuition: Effect of New Taken Loan on capitalVinod Kumar ( Educator )http://www.blogger.com/profile/05331144653044775142noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3065238051582539150.post-45370674737841620182012-05-31T01:39:13.000+05:302012-05-31T01:39:13.000+05:30Sorry to say sir but equity cannot be liability. T...Sorry to say sir but equity cannot be liability. There are two ways of financing the business. 1st is taking loans which is called debt financing or liabilities. 2nd is taking money from owners or their share which is called equity financing. Loan is the thing, you are not taking from your owner so its a liability so that how it can effect equity?Ali Imrannoreply@blogger.com