Following definition is the representative of the plethora of definitions one would find on the internet:
The business entity concept declares that a business stands independently from its owner, and hence the two should be treated as separate entities when recording transactions. Therefore, all business transactions (income, expenses, assets, liabilities, and equity) must be kept separate from the owner’s account to ensure accurate accounting records.
Problem is I am not able to differentiate between the Business and The owners. In other words, I am not able to see them as different entities. To me, business is run by entrepreneurs and is dependent on them and business would not have existed if it’s not for them. And, now this concept says Business is “independent”, well it confuses me, contradicts what I think, and hence I am baffled. How to see the business and its owners as separate entities, is what I am looking for.
P.S. There’s no site to ask for accounting’s academia related questions, so I apologise everyone to ask accounting related questions here.