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In a very simple sense, business implies something that is carried on with a motive to earn profit/income. Profit motive is • Consignment Accounting
inherent in business. Not that every business generates profits, but the motive behind every act/transaction in a business • Bank Reconciliation Statement
would be making profit. • Partnership Accounts
• Final Accounts
• Capital
The amounts and other resources with which a business is started or carried on is called Capital.
Owned Capital
The amounts and other resources employed in the business which belong to the owner/owners of the business are together
called owned capital.
Loaned Capital
The amounts and other resources employed in business which are borrowed by the owner/owners of the business from
outside persons or organisations are together called loaned capital.
Profit is a numerical figure. It can either be positive (when there is a profit), negative (when there is a loss) or zero when there • Standard Costing
is neither profit nor loss. A loss is also expressed as a negative profit. (Variance Analysis)
In a similar way, loss is also a numerical figure. It can either be positive (when there is a loss), negative (when there is a • Funds Flow Cash Flow
profit) or zero when there is neither profit nor loss. A profit can also be as a negative loss, but is seldom done.
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Capital (owned & loaned), Profit, Loss :: An understanding http://www.futureaccountant.com/accounting-process/study-notes/capital-...
Oberoi, went to the wholesale market, bought vegetables with the Rs. 280 (his capital for day two) and then set out on his trip
around the locality selling vegetables. Even on day two he was selling his stock by adding certain amount over the cost at which
he purchased them.
Towards the end of the day he noticed that there was certain stock left over which if he is unable to sell would get spoilt and he
would get nothing out of it. Therefore he sold them by reducing the price. This price at which he sold the vegetables was far less
than the price at which he bought them.
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