Some Important Accounting Terms

1. Business: Every legal enterprises setup with a view to earning profit is called business.

2. Capital: Capital is that amount of cash, goods, or assets which is initially invested by the proprietor which starting his business..

If additional amount is invested after the starting of the business. It is also called the capital profit in the business.

Profit in the business adds to the capital and loss in business reduces the capital.

3.Goods: The articles purchased for selling to earn profit or raw material purchased for manufacturing finished articles and then selling to earn profit is called goods.

4. Purchases: The goods bought for business are called purchase. There are two types of purchase.

A. Credit Purchase: When the price for goods purchased is to be paid in future, such purchases are called credit purchase.

B. Cash Purchase: When the price for goods purchased is to be paid at the time of delivery, such purchases are called cash purchase.

5. Purchase return / Return outward: If the goods purchase are return to the seller (creditors) because of being damage or not according to the order.or for any other reason. It is called purchase return or return outward.

6. Sales: Sale is a voluntary legal transfer of goods in exchange of money. There are two types of sales.

A. Credit sales: When the price for goods sold is to be received in future. It is called credit sales.

B. Cash sales: When the price for goods sold is received at the time of delivery. It is called cash sales. 

7. Sales return / Return inward: If the goods sold are returned by the buyer because of being damage or not according to the order or for any other reason. It is called sales return or return inward.

8. Stock: The unsold goods remaining on a particular date or during a particular period is called stock. 

The stock estimated at the end of financial year for the purpose of calculating the profit of business is called closing stock. 

At the beginning of of next financial year it becomes opening stock.

9. Turnover: The total amount of sale (cash & credit) during a particular period is called turnover.

10. Discount: The concession granted to a customer by the dealer, is called discount. There are two types of discount.

A. Trade Discount: When dealers allow concession to a buyer on the invoice price of goods with a view to inducing a buyer to purchase more and more goods. It is called trade discount.

B. Cash Discount: When dealers allow concession to a buyer on the amount to be realized from him with a view to receiving prompt payment. It is called cash discount.

11. Commission: The reward received for buying or selling goods or for any other service for business is called commission. 

12. Debtors: The person / institution to whom you have sold goods / money on credit is called debtors till the full amount is not paid.(Customer)

13. Creditors: The person / institution to whom you have purchased goods / money on credit is called creditors till the full amount is not paid. (Supplier)

14. Assets: The properties which are necessary for running the business are called assets.

For example: Furniture, Building, Tools, Cash etc. 

There are tow types of assets.

A. Fixed Assets: Like land and building, furniture, machinery plant tools, computer etc.

B. Current Assets: Like cash, bills receivable, stock, debtors etc. 

15. Liabilities: The advance and obligation which are to be paid to the creditors, other person and institutions are called liabilities. For examples: Capital account, creditors, outstanding expenses, bill payable etc.

16. Transaction: Mutual dealing of goods, money, or services in business is called transaction. 

17. Loan Account: When funds are borrowed from a person or institution for business called loan account.

-----------------------------------------------------------------------------------------------------------------------------

ALL COMPUTER PDF NOTES AVAILABLE IN HINDI & ENGLISH MEDIUM

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

COMPUTER NOTES FOR TEACHERS AVAILABLE IN HINDI & ENGLISH MEDIUM

Dear Teachers ऐसा कंप्यूटर नोट्स जिसे आप पढ़कर बच्चों को आसानी से पढ़ा सकते हैं। यह नोट्स केवल कंप्यूटर इंस्टिट्यूट एवं टीचर्स के लिए हैं। इस नोट्स में आप अपना Watermark, Header / Footer और या Logo भी लगा सकते हैं। यदि आपको नोट्स खरीदने से रिलेटेड कोई भी problem आती है तो आप हमें Call या WhatsApp कर सकते हैं। Call / WhatsApp: +91 9650597419

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

COMPUTER PDF NOTES IN ENGLISH

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

COMPUTER PDF NOTES IN HINDI

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

BASIC COMPUTER PDF NOTES IN ENGLISH

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

BASIC COMPUTER PDF NOTES IN HINDI

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

MS WORD PDF NOTES IN ENGLISH

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

MS WORD PRACTICE ASSIGNMENT FILE

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

MS WORD PDF NOTES IN HINDI

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

MS EXCEL PDF NOTES IN ENGLISH

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

MS EXCEL PDF NOTES IN HINDI

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

MS EXCEL PRACTICE ASSIGNMENT FILE

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

INTERNET PDF NOTES IN HINDI

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------

COMPUTER / LAPTOP REPAIRING NOTES IN HINDI

BUY NOW     DOWNLOAD NOW

-----------------------------------------------------------------------------------------------------------------------------