When we inject capital, why we credit capital instead of debit capital?

Have you ever thought that when the owner invests money into the business, why does the double entry shows as debit cash, credit capital? Some of you may think that it is because of double entry principle that one entry must be debit and another must be credit. There is actually a reason behind it.

If you are unawared, to obtain a right (asset) there must be an obligation (liability). Therefore, applying this to the above case, image yourself as the business and one guy puts money into your pocket, you get the rights of using money but at the same time you will also have an obligation toward the guy who puts his money into your pocket.

Therefore, we credit capital account when it increases because it shows the obligation of the business to its owner, that means the amount that business owes to the owner.

Those who are studying ACCA P level papers should have such detailed understanding of something and not just learning something without knowing the reason. This is an example of the bigger picture of something :)