Financial Analysis in Arabic - 06 1080p
Summary
TLDRThis script introduces the concept of assets, capital, and liabilities in the context of starting an online education service business. The example outlines the costs involved, such as rent, furniture, staff salaries, and operational expenses, and explains how these are recorded in business books. It also differentiates between the business's legal entity and personal investment, highlighting the importance of capital and liabilities in business finance.
Takeaways
- π’ Start-up Business: The script discusses starting an online education service business.
- π° Initial Investment: A small office is rented, furniture is bought, and staff are hired, with initial costs totaling 20,500 rupees per month.
- π‘ Additional Costs: There are also monthly expenses for electricity and communication, amounting to 500 rupees.
- πΌ Seed Money: The individual decides to invest 250,000 rupees from personal savings as seed money.
- π External Funding: The individual's mother lends an additional 100,000 rupees, increasing the start-up capital to 350,000 rupees.
- π Assets and Liabilities: The furniture is considered an asset, while the loan from the mother is a liability to be recorded in the business's books.
- π¦ Capital and Liability: The business's capital is recorded as 250,000 rupees, and the 100,000 rupee loan is a liability.
- π’ Legal Entity: The business is a separate legal entity from the individual, with its own financial records.
- π Assets Calculation: The total assets of the business, in the form of cash, are 350,000 rupees.
- π No Income Yet: At the start, there is no income as there are no customers, resulting in zero income to report.
- πΈ Monthly Expenses: The business has fixed monthly expenses of 10,000 rupees, including salaries, rent, and bills.
Q & A
What is the purpose of the example provided in the script?
-The purpose of the example is to illustrate the basic concepts of assets, capital, liabilities, income, and expenses in the context of starting an online education service business.
How much does the office space cost per month according to the script?
-The office space costs 5,000 rupees per month.
What is the total cost of furniture mentioned in the script?
-The total cost of furniture is 15,000 rupees.
How much do the staff salaries contribute to the monthly expenses of the business?
-The staff salaries contribute 5,000 rupees to the monthly expenses.
What are the monthly expenses for electricity and communication as per the script?
-The monthly expenses for electricity and communication are 500 rupees.
How much seed money does the individual decide to invest from their savings?
-The individual decides to invest 250,000 rupees as seed money from their savings.
What is the total amount of money available to start the business after the mother's loan?
-After the mother's loan of 100,000 rupees, there is a total of 350,000 rupees available to start the business.
What is the definition of capital in the context of this script?
-In this context, capital refers to the amount of money invested in the business from the individual's own pocket, which is 250,000 rupees.
What is the business's liability according to the script?
-The business's liability is the 100,000 rupees payable to the individual's mother.
What is the total value of assets in the form of cash at the start of the business?
-The total value of assets in the form of cash at the start of the business is 350,000 rupees.
What is the current state of the business's income and expenses?
-As the business has just started and there are no customers, the income is zero. However, the expenses are 10,000 rupees per month, including salaries, rent, and bills.
Outlines
πΌ Starting an Online Education Business
This paragraph introduces the concept of starting an online education service business. It outlines the initial investment in rent, furniture, and staff salaries, totaling 350,000 rupees, which includes seed money from personal savings and a loan from the narrator's mother. The paragraph explains the difference between assets, capital, and liabilities, emphasizing that the business is a separate legal entity with its own capital and liabilities recorded in its books. The furniture is considered an asset, while the loan from the mother is a liability. The paragraph also touches on the lack of income at the beginning of the business due to the absence of customers, but notes the existence of monthly expenses such as salaries, rent, and utilities.
Mindmap
Keywords
π‘Online Education Service Business
π‘Rent
π‘Furniture
π‘Staff
π‘Electricity and Communications
π‘Seed Money
π‘Capital
π‘Liability
π‘Asset
π‘Income
π‘Expenses
Highlights
Starting an online education service business requires obtaining a small office on rent, buying furniture, and hiring staff.
The monthly cost for office space, furniture, and staff salaries is 20,000 rupees.
Additional monthly expenses include 500 rupees for electricity and communications.
An initial investment of 250,000 rupees is made from personal savings as seed money.
A loan of 100,000 rupees from the mother increases the startup capital to 350,000 rupees.
The furniture purchased is considered an asset of the business.
The amount invested from personal savings, 250,000 rupees, is recorded as capital.
The 100,000 rupees loan is a liability, recorded as payable to the mother.
The business is a separate legal entity from the individual, with its own capital and liabilities.
Capital and liability together form the business's assets, totaling 350,000 rupees in cash.
Income (I) is earned from business sales to students, currently at zero due to no customers.
Expenses (E) include salaries, rent, and bills, totaling 10,000 rupees per month.
Understanding the basics of assets, capital, liabilities, income, and expenses is crucial for business management.
The example illustrates the financial setup of a new business venture.
The importance of distinguishing between personal and business finances is highlighted.
The transcript provides a clear example of how to account for initial business investments and loans.
The concept of assets being in the form of cash and other tangible items like furniture is explained.
The transcript emphasizes the importance of recording all financial transactions for a business.
The example demonstrates the initial financial challenges of a startup with no income and ongoing expenses.
Transcripts
[Music]
let's understand Alis with the help of
an example say you decide to start an
online education service business you
want to obtain a small office on rent
buy furniture and hire two staff you
found a space for 5,000 rupees a month
and the furniture is another 15,000
rupees and the staff are hired at a
total of another 5 ,000 rupees monthly
plus your electricity and Communications
will run 500 rupees you decide to invest
250,000 rupees as seed money from your
savings your mother lends you 100,000
rupees now you have
350,000 Rupees to start your
business your furniture is an asset a in
Alice the the amount you invested from
your own pocket is the C of the business
Capital your business is considered a
separate legal entity from you therefore
what you invest in business is recorded
in the book say capital in this example
the capital is
250,000 rupees the 100,000 Rupees is
payable to your mother payables of
business are called
liabilities this amount will be recorded
in your business as a liability now you
know about C and L when we add capital
and liability we have asset here the
asset is in form of
350,000 rupees cash I is for income
income is what you earn from business
you make sales to students this is your
income you've just started the business
and there are no customers so right now
you have zero income to report but you
do have salaries rent electricity and
communication bills these are your
expenses so your expenses are 10,000
rupees a month these are expenses or
e
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