Application of Funds.
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Application of Funds
Complicated Noodles, a company situated in the Patna City, has got funds to run the business.
That means money is employed somewhere on the Earth.
That’s where Application of Funds comes into the picture.
What is Application of Funds?
The place where money is employed is called Application of Funds.
It’s also called Application of Capital.
Application of Funds is an asset i.e. what the company owns.
It forms the assets part of the Balance Sheet.
What are the Applications of these Funds?
It can be investment land, building, plant, machinery, investment in other companies or reserve cash.
What is the Structure of Application of Funds?
Fixed Assets
– Tangible assets
– Intangible Assets
Investments
Current Assets
Moral of the Story
Application of Funds tells where the money is employed.
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