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Capital
Dear Expert I'm literally confused We transfer business profit to capital account every year. My question is when used this capital in business and what is intention of capital in business
Replies (24)
Profit is addition of capital... When u required u invest this capital.. Just like fixed assets purchase.. Make any investment etc..
Trough capital u can run ur business only
Thank sir for ur valuable reply... but how to purchase fixed assets & investment by this capital
Profit is realised in cash... Invest ur capital.. Capital in form of cash or kind
If my cash & bank Bal is 7 Lac but capital is 17 Then can I purchase a property more than 15 Lac
Then what is ur source of finance... It may be loan... If u hv not sufficient cash & bank balance then how could u purchase that.. U can take loan
U can purchase any value of property... Just keep in mind that source of finance is accounted and not unaccounted money... U can take loan and purchase that property or sell ur fixed assets or investment and generate cash
What u r giving consideration that should be accounted money... Just take loan and buy the property if u hv not sufficient capital
Sir Then what is role of capital in firm
Tell me capital in what form u hv.. U hv just 7 lakh cash & Bank.. Then bakance capital is?? and when u hv not sufficient cash then how could u purchase the property... Tell??
Capital is invested in stock or fixed assets.. Or in investment.. When u go for buy a property u should hv accounted money
Ok sir plz can u tell me how to capital invest in stocks & fixed assets
Its ur capital through which u are running ur business... Without investing in stock or fixed assets how could u run ur business
Tell me ur exact problem... Then i can suggest u any solution... Either u can mail me at Cadivakarthakur92 @ gmail.com and contact at my whatsapp no 9968378334
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