WHAT IS CAPITAL | BASIC ACCOUNTING TERMS | ACCOUNTING.

ACCOUNTS BY SONIA SETIA
ACCOUNTS BY SONIA SETIA
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WHAT IS CAPITAL | BASIC ACCOUNTING TERMS | ACCOUNTING.
Transcript
00:00Hello guys this is Sonia Sethia your accounts and eco-tutor so today we are starting our
00:04basic accounting term number two that is capital amount or money invested in a business by
00:11the owner or a proprietor in case of a proprietorship firm, if you are talking about a sole proprietor
00:16then the money invested by the owner in the business, if you are talking about a partnership
00:21then the money invested by the partner in the business, and if you are talking about
00:26a shareholder then the money invested by the shareholder in the company that is known as
00:30the capital, this is also called net worth or owner's equity, how to get capital, capital
00:36is equal to assets minus liabilities, we are going to do all these terms later, what are
00:41the assets, what are the liabilities, how will the capital increase, additional capital
00:46if you invest more money in the business then it will increase the capital, if your business
00:50has earned profits then it will also increase the capital, if you are taking out for personal
00:57use of the house and there are losses then it will decrease, thank you.

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