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Separate Entity Concept

5 August, 2015 - 14:41

Even when a business has a single owner we make a distinction between the owner's assets and the assets of the business. For example if the owner gives a van to the business this will count as capital introduced, if the owner takes a salary this will be accounted for as drawings.Famous case laws are "salomon vs salomon & co.ltd",Lee vs Lee's air farming ltd." etc