Why capital is listed under liability of balance sheet?Capital means investment made by the owner of the company isn't it. In that aspect...

All capital, that is the funds put in by the owners of a
business or a firm appear on the liability side of a balance sheet. These funds may
appear under different account heads such as owners funds, share capital, and  retained
earnings. An a wider meaning of capital, which is generally used in some phrase like
'capital employed' refers to what ever is the value of the assets owned by the including
its fixed assets and working capital. This capital employed appears on the assets side
of the balance sheet, and its amount is exactly equal to its sources of funds included
on the liability side. The sources of funds, in addition to owner's capital include
loans taken for carrying out the business and any provision kept for expected expenses
or losses, which have not been actually incurred till the date of balance
sheet.

The confusion regarding owners funds being shown as
liability will be automatically vanish if you treat a business as a en entity separate
from its owners. A business requires fund for fixed assets and working capital. These
funds come from two sources, the owners funds and borrowed funds. Both these are sources
of funds that the business has received. Therefore both these are therefore coming under
liability side, which is also descried as sources of
funds.

If ever a business is closed down or sold to someone
else at the book value of its assets, the money so obtained will be returned to the
owners after meeting the loan liability. So in a way we can say that like loan the
owner's fund are also liability for the business.