Difference Between – Owned Capital and Borrowed Capital

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.

borrowed capital & owned capital

Sr. No.Point to discussOwned CapitalBorrowed Capital 
1.MeaningOwned 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.StatusIt is ownership or owned capital.It is debt or owned capital.
3.NatureIt 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.MentionIt is mentioned in capital clause of memorandum of Association.It is not mentioned in Memorandum of Association.
5.ConsiderationReturn 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.

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