00:01
Okay, so let's understand the solution, okay, but to begin with, we will first start with how many types of accounts we do have in our accounting, okay? first of all, assets, capital, liabilities, expenses, and revenue.
00:48
So you can write it down also.
00:52
It will be very important for you to summarize the rules which i'm going to write.
00:58
Followed by that.
01:01
So assets are recoverable amount.
01:05
Like let's say suppose you are into business of selling video games or selling any type of good services to your customer.
01:18
So let's suppose your customer says that i will pay you off after a period of 30 days.
01:24
Okay.
01:25
So that amount will become recoverable after a certain period of 30 days.
01:30
Okay.
01:31
Now such amount will be considered as assets.
01:34
Such amount will be considered as assets.
01:35
Amount will be known as assets okay recoverable amounts cash bank like these so let's make a distinction here so capital is equity what is equity what is preference preference share capital as s for share see for capital you can write in full form also equity share capital so the capital refers to the amount which is raised internally within the organization or externally out of the organization to finance the business.
02:39
Okay, to finance the core activities of the company.
02:43
Let's suppose we have we are willing to start our new business.
02:47
But suppose we are short of funds as of now.
02:51
So what we will do? we will raise funds from outside of the company.
02:55
Like from the investors who are willing to invest in the new companies.
02:59
So that will be considered as capital.
03:03
However, you can also understand from this that a capital is a liability.
03:10
Because let's suppose if you are you have investors and they are investing in your firm, it is very, very obvious that they are likely to liquidate their investment after a certain period of time.
03:22
Like let's suppose after 20 to 30 years of time.
03:26
But as of now, understand...