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Hello sir
can you please explain me the difference between the capital invested by business owners and third parties for an unincorporated business?
Thanking you in advance
For any business (whether incorporated or unincorporated) it is only the owners who invest capital.
Other people may lend money to the company in which case it is a non-current liability (assuming it is being lent for more than one year).
(If it is incorporated (i.e. a limited company) then there will be several owners and the capital is called share capital. If it is unincorporated with several owners it becomes a partnership, which is not in the syllabus for F3, although because they are owners then again the money invested is called capital)
The free lecture that goes with Chapter 2 of the Lecture Notes should help you.
You can find links to all the free Paper F3 lectures on this page:https://opentuition.com/acca/f3/acca-f3-lectures/
(You need to download the free Lecture Notes which go with the lectures)
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