Pls answer..

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Asawari Malhotra (Querist)
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16 November 2013 'Every transaction changes your financial position' says a book. Now if I have 1 crore and I buy an apartment with the same amount, this is very much a transaction but how has my financial position changed? because I had an asset,cash 1 crore and now I have an apartment which is also an asset worth 1 crore.. so don't you think my financial status/position is still the same? If yes, what does the writer exactly mean by the above sentence?

CA Vivek R Trivedi

CA Vivek R Trivedi (Expert)
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16 November 2013 ya its true,
Till you have Cash , your financial position is very strong and its liquidity with you.

As soon as you have bought a apartment liquidity apart from you.

Earlier your liquid asset worth Rs. 1 Crore.
Now its your Fixed Asset worth Rs. 1 Crore.

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