Srimad Bhagavatam Canto 02, Chapter 08, Text 22

SB 2.8.22

yo vanusayinam sargah
pasandasya ca sambhavah
atmano bandha-moksau ca
vyavasthanam sva-rupatah
 
Translation by His Divine Grace A. C. Bhaktivedanta Swami Srila Prabhupada: 
 
Please also explain how, merged in the body of the Lord, living beings are created, and how the infidels appear in the world. Also please explain how the unconditioned living entities exist.
 
Purport by His Divine Grace A. C. Bhaktivedanta Swami Srila Prabhupada: 
 
The progressive devotee of the Lord must inquire from the bona fide spiritual master how living entities merged in the body of the Lord again come back at the time of creation. There are two kinds of living entities. There are the ever-liberated, unconditioned living beings as well as the ever-conditioned living beings. Of the ever-conditioned living beings, there are two divisions. They are the faithful and the infidels. Of the faithful there are again two divisions, namely the devotees and the mental speculators. The mental speculators desire to merge into the existence of the Lord, or to become one with the Lord, whereas the devotees of the Lord desire to keep separate identities and constantly engage in the service of the Lord. The devotees who are not fully purified, as well as the empiric philosophers, become conditioned again during the next creation for further purification. Such conditioned souls become liberated by further progress of devotional service to the Lord. Maharaja Pariksit asked all these questions from the bona fide spiritual master in order to become fully equipped in the science of God.
Srimad Bhagavatam Canto 02, Chapter 08, Text 21
Srimad Bhagavatam Canto 02, Chapter 08, Text 23