I attended guest speaker session on 13th July. Shakar Sir taught about Language of money. Under this he taught about balance sheet, profit and loss, and ratio analysis. Company produces the balance sheet, profit, and loss statement. The company produces the profit and loss, but it is not produce the shareholders.
Left side balance sheet is called capital and liability. Share holders also called promoter. Capital liability is called source of fund. Equity is nothing but shares. Two type of share holder fund- equity and retain earning. Borrowing is called loans. Fixed capital is a long term loan. Two types of borrowing- short term and long term borrowing. Short term loans also called current liability.
Equity and resource is called Net worth. Company raised money is called source. Two types of assets- fixed asset and current asset. Return money is called depreciation striate line value method and return down value method. Current assets are inventory, which are not sold. EBIDTP is an “Earnings before interest depreciation tax profit”.
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