Easy way to learn and memorized – Notes for class 12th std , Distinguish between owned Capital & Borrowed Capital – Point of Discussion class 12th std , S.P – Notes of role of secretary in capital formation – Difference between owned capital & borrowed capital , point of discussion – owned Capital and Borrowed Capital – Secretarial Practice – Notes, & Distinguish Between– Difference between, Study material, studies notes, study notes. According to the New Textbook for HSC Board
Owned Capital Borrowed Capital
| Sr.No | Point | Owned Capital | Borrowed Capital |
| 1. | Meaning | The funds collected by a company through issue of equity shares and preference shares and plough back of profit are called owned capital. | The fund collected by a company through the issue of debentures, accepting public deposits and borrowing from the banks and financial institutions are called borrowed capital. |
| 2. | Return on investment | The contributors to the share capital get dividend as the return on their investment. | The contributors to the borrowed capital get interest as the return on their investment. |
| 3. | Status of supplier | The contributors to the owned capital are the co-owners or the joint owners of the company. | The contributors to the borrowed capital are the creditors of the company. |
| 4. | Voting Rights | The contributor to the owned capital has a right to vote at the general meetings on all the matters. | The contributor to the borrowed capital does not have voting rights |
| 5. | Redemption | Repayment or redemption of the owned capital is made only at the time of the winding-up of the company. | Repayment or redemption of the borrowed capital is made on the maturity or redemption date. |