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00:00In this, you come to page number 93, Conceptual Framework, in our book, page number 93, and
00:27in our book, page number 92, Conceptual Framework, in our book, page number 92, Conceptual Framework,
00:57in our book, page number 92, Conceptual Framework, in our book, Conceptual Framework, Conceptual
01:24What are the assets?
01:26Assets, liability, equity, income and expenses.
01:31This table is also there on the next page.
01:33Assets, liability, equity, income and expenses.
01:42This is the same definition that we have read from there.
01:44Assets are your economic resources.
01:47They are under your control and you expect future economic benefits from them.
01:53And all the assets in the business are dependent on two people.
01:58What do we call the money of the owners? Equity.
02:02And what do we call the money of the non-owners? Liability.
02:05Capital is the money of the non-owners.
02:07And then income.
02:10What does income do to our assets?
02:14Increases and decreases liabilities.
02:18How? Give an example.
02:23How does income affect your assets?
02:30Tell me.
02:33Read the definition.
02:37It is written here.
02:39Income increases in assets and decreases in liabilities that result in increase in equity
02:45other than those relating to contribution from holders of equity claims.
02:52He says that the money that the business earns,
02:55whatever the owners increase to equity,
03:00what do they increase to?
03:01That is income.
03:03But the money that the owner puts in his pocket,
03:07the business has earned a little.
03:09You must have read.
03:11What is capital?
03:12It increases with profit.
03:13And if the owner takes fresh capital,
03:15what does it mean?
03:17It increases with fresh capital.
03:19Capital increases with fresh capital,
03:21but there is no income.
03:22The business has not earned it.
03:24The business has not earned it.
03:27But he is saying income with two things.
03:30One is increasing.
03:32What is yours?
03:34Increase in assets and decrease in liabilities.
03:39How?
03:41Give an example.
03:43Increase in assets.
03:45We have earned so much income.
03:47Income will be credited to the source.
03:49Cash debit will be credited to the source.
03:51With this, you can increase your assets.
03:53When we get income,
03:54when we do entries,
03:55receivable debit,
03:56or cash debit,
03:58what do they do for us?
03:59They generate assets.
04:01What do we do?
04:03Asset debit.
04:04Because of income,
04:05our assets will increase.
04:07Whenever we sell something,
04:10there is a gain.
04:12What do we do?
04:13If there is an increase in our assets,
04:16income increases in our assets.
04:19How does it decrease in liabilities?
04:29Increase in assets has income.
04:32How does decrease in liabilities have income?
04:37Tell me.
04:43Tell me.
04:53Have you ever thought about it?
04:55You have studied ITA and FIMR.
04:57Increase in liabilities has income.
04:59How does it decrease in liabilities?
05:03Increase in liabilities has income.
05:13Discount receipt.
05:19Discount receipt?
05:21What is discount receipt?
05:28Relate is correct.
05:29Because if we had to give money to a person,
05:321 lakh rupees.
05:331000 rupees.
05:34And if we give 100% discount,
05:37where will our liabilities go?
05:39100% liabilities will decrease.
05:43What is discount receipt?
05:45It is our budget.
05:47If we had to give 1000 rupees,
05:49how much would we give?
05:50900 rupees.
05:53Decrease in liabilities has income.
05:59Is there any other example?
06:03Prepaid?
06:04Whose?
06:09Expense is expense.
06:11Prepaid or postpaid?
06:12We are talking about income.
06:15Expense is expense.
06:16Capital will always be less than that.
06:19What do you say?
06:23Look.
06:24Basically,
06:25Let's read the definition of income.
06:28Increase in assets or decrease in liabilities
06:32that result in increase in equity.
06:36Everything that increases your equity,
06:38is your income.
06:40What do you say, brother?
06:42Tell me this.
06:43You took a loan.
06:46When you pay the loan,
06:47will your liabilities decrease or not?
06:50Liabilities will decrease.
06:52If liabilities decrease,
06:53will your equity increase or not?
06:55But assets will also decrease.
06:57Because when I pay the liability,
06:59I will divert the bank loan.
07:01What about cash?
07:02I will divert it.
07:04If we look at it purely,
07:06their example is good.
07:07Decrease in liabilities.
07:09If you give Rs. 1000 to someone,
07:10he will give you a Rs. 100 discount.
07:12So, liability decreases.
07:13And the remaining Rs. 100 will increase your profit.
07:16And your profit will increase your capital.
07:19That's right, friend.
07:20Let's move ahead.
07:23You say that you have not read the definitions.
07:26It is written ahead, expenses.
07:30It says decrease in assets
07:32or increase in liabilities
07:34that reduce our equity.
07:37What do we call that?
07:38We call it expense.
07:39Let's give an example.
07:44Give an example, kid.
08:03It is very easy to say decrease in assets.
08:06All the expenses you have to pay in the world,
08:08in cash,
08:09electricity bill, gas bill,
08:11cleaning bill, office staff bill,
08:13all bills,
08:14when you pay them,
08:15their salaries,
08:16when you pay them,
08:17what happens?
08:18Assets decrease.
08:20This is very easy.
08:21The first part is very easy.
08:22Expenses are those
08:23whose assets decrease.
08:26And the second?
08:27What is written?
08:28Increase in liabilities.
08:31If I make a payment,
08:32assets will decrease.
08:34If I don't make a payment,
08:35where will my liabilities go?
08:36They will increase.
08:38Everything that increases my liabilities,
08:42it means that
08:43the basic definition of liability,
08:45which I had read in IT,
08:46liability is an obligation
08:49arises as a result of some
08:51cost event,
08:52the settlement of which requires
08:54outflow of economic benefit.
08:58Liability is that
08:59for which for the settlement,
09:01what do you have to do with economic benefit?
09:03You have to outflow it.
09:04You have to give it to the other party.
09:08So, if your liability is increasing
09:10and to settle it in the future,
09:12you need an outflow.
09:16Obviously,
09:17what is needed to settle liability?
09:19Decrease in assets.
09:20What will happen?
09:22Anything,
09:23whenever your liability increases,
09:25to settle it in the future,
09:27what do you need?
09:29Decrease in assets.
09:30Increase in liabilities,
09:31what does it result in?
09:33Decrease in assets.
09:35So, if you have some expense
09:37or some interest expense,
09:38if you don't do it,
09:39what will it increase?
09:41If you pay the liability,
09:43it will reduce the assets.
09:44So, anything
09:45which will reduce your assets
09:47or increase your liabilities,
09:49what is it called?
09:50It is called expense.
09:53One thing is left in it.
09:54Which one?
09:57If it becomes an asset,
09:58there will be liability,
09:59there will be equity,
10:00there will be income
10:01and there will be expense.
10:02Read the last few things
10:03and see what is written here.
10:04Other changes in economic
10:05resources and claims.
10:30Question inaudible.
10:40Yes, he is saying that
10:42what more changes can happen
10:44in our economic resources?
10:45He says that when
10:47the shareholder gives us money,
10:49what happens to us?
10:51Equity claim increases
10:53and when we get them to do drawings
10:55or give dividends,
10:56the equity claim reduces.
10:58This is also a movement
10:59in your resources.
11:00Second, exchange of assets
11:01and liabilities
11:02that do not result in
11:04increase or decrease in equity.