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Difference capital and circulated capital

Kollipara Sundaraiah (B.com) (2963 Points)

04 February 2021

what is the meaning and difference between capital and circulated capital .

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2 Replies

imran khan (imran@123) (47 Points)
Replied 04 February 2021

If there is no business trading profits and other income are arise and expenses will overup then the capital comes negative

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 04 February 2021

Difference capital is negative capital whereas Circulating capital is money being used for core operations of a company. Circulating capital includes cash, operating expenses, raw materials, inventory in process, finished goods inventory, and accounts receivable