Owned Capital & Borrowed Capital
Easy way to learn and memorized – class 12th – S.P – Notes of Source of Business – Difference between Owned Capital & Borrowed Capital , Distinguish between working capital and fixed capital – business finance – Secretarial Practice – Notes, & Distinguish Between – according to the New Textbook for HSC Board – Difference between, Study material, studies notes, study notes.
| Sr. No. | Point to discuss | Owned Capital | Borrowed Capital |
| 1. | Meaning | Owned Capital refers to the Capital collected by issuing various types of shares. | Borrowed capital refer tot he capital collected by issuing debentures, bonds, taking loans from banks. etc. |
| 2. | Status | It is ownership or owned capital. | It is debt or owned capital. |
| 3. | Nature | It is the permanent capital, as the company is not under obligation to repay the amount during its lifetime. | it is necessary temporary capital as it is to be repaid after fixed period of them. |
| 4. | Mention | It is mentioned in capital clause of memorandum of Association. | It is not mentioned in Memorandum of Association. |
| 5. | Consideration | Return on capital is paid in the form of dividend. | Return of capital is paid in the form of interest. |
| 6. | Liability | It is not a liability for a company. | It is a liability for a company. |