Thursday, December 16, 2010

Difference Between Cash & Fund


            Cash means “money” and does not include credit or kind.   
     Fund includes every thing like credit or kind.  

     For example, a supplier supplies material on credit for which payment is not made immediately.  Till the payment is made by us, the supplier has given us money’s worth of goods.  Similarly services would also be provided.  Thus fund could mean, either “physical cash” or “credit” for supply of goods or services.  Hence, at times, the term “fund” also refers to money or money’s worth (OR) cash or kind. 

Another example is in case capital is brought into an enterprise in a form, other than cash; say in the form of land or building or machinery or vehicle.  This is also fund but would not fall under the category of cash.

3 comments:

  1. THANKS.. FOR THIS HELP.
    THIS IS REALLY GOING TO SOLVE QUERIES OF STUDENTS WHO ARE FACING PROBLEMS IN UNDERSTANDING THE TERMS...

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  2. Thanks AMIT,

    Utr inputs will be a gr8 help to take ahead this website. So that we can solve a lot of problems of our friends.

    KK

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  3. also one difference is there.. cash is an asset we have it in money or in forms of money i.e.,cheque and bills.. but fund is liability like share holders fund corpus fund and creditors fund..and cash is a liquid asset but fund is a large concept which may or maynot be in liquid form..(share holders fund is a long term capital)

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