balance-sheet

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rajesh (Querist)
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20 November 2010 1. What is corpus fund, i mean which type of organization can applicable for this type of fund.
2. what is secured and unsecured loans. define the categories comes under secured and unsecured loan.
3. what is drawings, which types of drawings are called personal.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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20 November 2010 The term ‘corpus’ is often confused and
misunderstood. The literal meaning of the term ‘corpus’
is the main part/organ of a body. The term ‘corpus’ also
denotes the sum and substance of an issue/entity. From a
layman’s point of view a corpus fund should be understood
as the capital of the organisation ; the funds generated
and kept for the existence and sustenance of the
organisation.
For a charitable organisation corpus fund are of
paramount importance. Normally a corpus fund denotes
a permanent fund kept for the basic expenditures needed
for the administration and survival of the organisation.
The corpus fund is generally not allowed to be utilised
for the attainment of the purposes, but the interest/dividend
accrued on such fund can be utilised as well as
accumulated.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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20 November 2010 If a loan is ‘secured’, it means it is secured against something you own (an ‘asset’) – and failing to repay the loan could result in the lender taking possession of that asset, and selling it to cover their losses.

An unsecured loan does not require you to secure anything against the loan – the lender relies on your contractual obligation to pay it back.

Because there is no security and the risk they are taking is therefore greater, the amount you can borrow tends to be less, and the repayment period is usually shorter.

The lending criteria also tend to be tighter: lenders generally charge a higher interest rate which is determined mainly by your credit history and level of income.

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