Glossary
Capital
Capital is the money the owner put into the shop to start it and buy the stock and equipment.
What it means for a shop owner
It appears on the balance sheet under equity. Raising it means the owner put in new money, and it falls through draws or losses. Do not mix shop money with your own so you can see the true picture.
A worked example
You started with 5,000 in capital. You bought stock for 3,000 and equipment for 1,000, with 1,000 left in cash.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes