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book keeping


Meaning THE ACCOUNTANT POINT OF VIEW           Accountants define capital as the original fund or money with which a person used to start a business. He considers capital as synonymous with money. Capital in this wise is the owner’s equity assets over liabilities.   THE ECONOMIST POINT OF VIEW           Economists must define capital as the resources or wealth made by men that are used for producing further wealth.   THE LAYMAN’S UNDERSTANDING To the layman, capital is the total amount of money for running a business.   SOURCES OF CAPITAL SOLE PROPRIETORSHIP The sole proprietor can obtain his capital from the following sources. Personal savings Loan from friends iii.      Trade credit Loan and overdraft from bank Grants/Loans from government.   THE PARTNERSHIP Loan and overdraft Trade credit iii.      Personal contributions from partners.   See also THE SOLE TRADER BUSINESS ORGANISATION CAPITAL

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