As mentioned in the first article about the balance sheet, I have invested Rs.5 lac rupees to start the boutique business where Rs.2,50,00 is invested on my own and remaining amount was borrowed from my uncle with an interest of 2% every month. The amount which is invested was been used for various expenses.
The amount which has been invested on my own is said to be owner’s equity or capital and the remaining amount is said to be a liability.
The capital is categorized into five types
1. Authorized capital
2. Issued capital
3. Subscribed capital
4. Called-Up capital and
5. Paid-Up Capital
These capitals come into picture when a company becomes public which means it goes for an initial public offering by issuing shares to the public.
A company will become public to raise more funds and also to expand in all parts of the world.
The procedure of a company becoming public and about types of capital will be explained in next article.
Until then,
Have a great time 😊😊😊😊😊
Sneha Polapragada.
The amount which has been invested on my own is said to be owner’s equity or capital and the remaining amount is said to be a liability.
The capital is categorized into five types
1. Authorized capital
2. Issued capital
3. Subscribed capital
4. Called-Up capital and
5. Paid-Up Capital
These capitals come into picture when a company becomes public which means it goes for an initial public offering by issuing shares to the public.
A company will become public to raise more funds and also to expand in all parts of the world.
The procedure of a company becoming public and about types of capital will be explained in next article.
Until then,
Have a great time 😊😊😊😊😊
Sneha Polapragada.
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