Capital example sentences

The discount/loss on it is, therefore, treated as capital loss and, normally, spread user the duration of debentures say 5-7 years meanwhile it should be shown under the head 'Miscellaneous Expenditure' on the asset side of Balance Sheet.The lack of surplus means that they are unable to obtain capital from their own savings, and have to borrow.Non-debt creating capital receipts are those receipts which are not borrowings and, therefore, do not give rise to debt.If total amount of depreciation charged is less than the depreciable cost then the capital expenditure is under recovered.It also helps in assessing whether the firm is earning a higher return on capital employed as compared to the interest rate paid.For example, in the Receipt and Payment account for the year ending on March 31, 2007, we record the total subscriptions received during 2006–07 including the amounts related to the years 2005–2006 and 2007-200 Similarly, taxes paid during 2006–07 even if they relate to the years 2005–06 and 2007–2008 can also be recorded in this account of 2006-0 It includes all receipts and payments whether they are of capital nature or of revenue nature.A share is a part of the owned capital whereas a debenture is a part of borrowed capital.Such a loss occurring from a falling bond price is called a capital loss to the bond holder.However, if the market rate of interest is already low enough so that everybody expects it to rise in future, causing capital losses, nobody will wish to hold bonds.These goods form a part of capital, one of the crucial factors of production in which a productive enterprise has invested, and they continue to enable the production process to go on for continuous cycles of production.Total output of final goods and services produced in an economy in a year has two different parts – the consumer goods and services, and the capital goods.The ratios include Gross Profit ratio, Operating ratio, Net-profit-ratio, Return on investment (Capital employed), Earnings per Share, Book alue per Share, Dividend per Share, and Price Earning ratio.returns for them if the rate of earnings on capital employed is higher than the rate of interest payable.In the absence of indirect taxes or subsidies, the total value of the final goods output is disbursed among different factors of production – wages to labour, interest to capital, rent to land etc.This ratio can also be computed in relation to total assets in lead of net assets (capital employed) It may be noted that the total of Debt Ratio and Proprietory Ratio will be equal to This ratio measures the extent of the coverage of long-term debt by assets.