The nature of capital and income

Bibliographic data

Monograph

Identifikator:: 102659555X

URN:: urn:nbn:de:zbw-retromon-82920

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The nature of capital and income

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1923

Scope:: XXI, 427 Seiten

Digitisation:: 2019

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Capital

Collection:: Economics Books

Sec. 3] CAPITAL SUMMATION 93 X’s BUSINESS Assets Liabilities Miscellaneous + « o $50,000 Due to others . . . $40,000 Due to X wow ee 10.000 $50,000 $50,000 X's Self Assets Due from “X’s business” . . $10,000 In the second account there is no counterbalancing liability. For real persons, then, assets and liabilities are not equal. If they were, the summation of their balance sheets would yield simply zero! If we would avoid this absurdity, we must either omit the capital-balance from the liabilities side, or if for the moment we place it there, we must, as in the above example, carry it forward to the opposite side of another account, which amounts to the same thing in the end. : §3 With this preliminary explanation, let us now introduce into our summation the capital accounts of the railroad whose stocks and bonds are included among the assets of persons X, Y, and Z. For simplicity, we shall suppose that these three persons are the only persons interested in the road. The balance sheet of the railroad company will accordingly appear as follows: — Rartroap Co. Assets Liabilities Railway . . . . . $50,000 Bonds (heldbyZ). . $20,000 Capital stock (held by X) $20,000 (held by Y) 10,000 30,000 $50,000 $50,000 Now if we combine this sheet with the preceding we shall see that its inclusion does not affect the results

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