Capital is the holder fairness and the net assets. It is generally the result of Lessing the liabilities from the assets. Businesses explain it as the quantity of money or possess assets for future expenditure. Capital also means that quantity or quality which is supplied in dealing by businessman or holder of business. When the business is stopped up, after paying exterior creditors, balance quantity will be his capital which he will acquire.
Conversion into Double Entry System: Learning Objectives: Define and explain conversion method. How trading and profit and loss account and balance sheet is prepared under conversion method. Conversion of books from single entry system to double entry system is possible either with retrospective (i.e.,
Capital Gearing Ratio: Definition and Explanation: Closely related to solvency ratio is the capital gearing ratio. Capital gearing ratio is mainly used to analyze the capital structure of a company. The term capital structure refers to the relationship between the various long-term form of
Capital and Revenue Items and goods Learning Objectives: Define explain and give examples capital and revenue expenditures, receipts, payments, profits and losses. What is the difference between capital and revenue expenditures? What are the exceptions to the general rule of capital and revenue expenditures?