As stated in Bhagavad-gita (13.3), ksetrajnam capi mam viddhi sarva-ksetresu bharata. There are two kinds of ksetrajna, or living beings. One is the individual living being, and the other is the supreme living being. The ordinary living being knows about his body to some extent, but the Supreme, Paramatma, knows the condition of all bodies. The individual living being is localized, and the Supreme. Paramatma. is all-pervading. In this sloka the word ksetrajna refers to an ordinary living being, not the supreme living being. This ordinary living being is of two kindsnitya-baddha or nitya-mukta. One is eternally conditioned and the other eternally liberated. The eternally liberated living being; are in the Vaikuntha jagat, the spiritual world, and they never fall into the material world. Those in the material world are conditioned souls, nitya-baddha. The nitya-baddhas can become liberated by controlling the mind because the cause of conditioned life is the mind. When the mind is trained and the soul is not under the minds control, the soul can be liberated even in this material world. When it is liberated, one is called jivan-mukta. A jivan-mukta knows how he has become conditioned; therefore he tries to purify himself and return home, back to Godhead. The eternally conditioned soul is eternally conditioned because he is controlled by the mind. The conditioned state and liberated state are compared to the sleeping, unconscious state and the awakened state. Those who are sleeping and unconscious are eternally conditioned, but those who are awake understand that they are eternally part and parcel of the Supreme Personality of Godhead, Krsna. Therefore even in this material world, they engage in Krsnas service. As confirmed by Srila Rupa Gosvami: iha yasya harer dasye. If one takes to Krsnas service, he is liberated, even though he appears to be a conditioned soul within the material world. Jivan-muktah sa ucyate. In any condition, one is to be considered liberated if his only business is to serve Krsna.