What is owner fund and borrowed fund
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Owners fund refers to the firm invested by the owners of the company. Owners fund comprises of preference share capital,equity share capital, retained earnings.
whereas
Borrowed fund refers to the fund that are generated through borrowings and loans. Borrowed fund comprises of loans from commercial banks and other financial institutions
whereas
Borrowed fund refers to the fund that are generated through borrowings and loans. Borrowed fund comprises of loans from commercial banks and other financial institutions
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Owners funds are the funds that are invested by the owners of an enterprise like a sole proprietor or partners or shareholders of a company.
Borrowed funds are the funds raised through loans or borrowings
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