Goods (Goods)
The goods are called that thing, Which is traded – traded or traded. Raw material obtained for the manufacture of goods under goods, Can be semi-finished material or finished goods
Purchase (Purchase)
When goods are purchased for sale by the merchant, It is called purchasing. It can be purchased in the form of raw material or finished goods. Purchase of properties, Purchase not included, Because they are not for resale.
Purchase Return (Purchase return)
Goods that are returned due to any of the purchased goods, Purchase return or outward return (to him)Return Outward) It is said.
Sales (Sales)
When the purchased goods are sold for the purpose of profit, it is called selling. Cash sale to sell cash goods (Cash Sales) And sale of credit to sell goods (Credit Sales) it is said.
Sales Return (Sales return)
Any goods sold are returned by the customer due to any reason, This is called sales return or internal return. In the lobbySales return On entry, it is entered into a journal voucher or debit note.
Stock (Stock or stock)
After a certain period of time, It is called a stock, on the last day of a business year, which remains unsold, the last stock (Closing Stock) It is said. This stock at the beginning of the new business year, Initial stock (Opening Stock) It is called.
Assets (Assets):–
All such permanent and temporary items of business which are necessary to run the business and which are owned by the businessman, The assets are called. Like – machine, All instruments used for personal use of land and business, Furniture, The printer, Computer etc.
Types of Assets
1. Fixed Assets Permanent Property () – Equipment, All instruments used for personal use of land and business, Furniture, The printer, Custom etc.
2. Current Assets Movable property (cash) – cash. Bank cash etc.
Basic Accounting Terms
Liabilities (Liability or Liabilities):–
The liability of the business is called liability. There are some essential states in the business., Those who have the obligation to repay the business like – Capital, Bill of credit, Creditor, Bank overdraft etc.
Revenue (Revenue): –
Revenue refers to the amount received regularly from the sale of goods or services. Business day-to-day activities like rent – rent, Interest, The commission, Discount, Dividends etc. are also called revenue.
Expenses (the expense):-
Goods in business, Costs incurred for producing or acquiring goods and services. The expenditure is called. Payments for receipt of goods and services are covered under expenditure. wage, The freight, Salary paid on delivery and sale of railway carriages and goods, The rent, advertisement, the expense, Insurance is also included in the expenditure. The cost of increasing the revenue in brief is called expenditure.
Types of Expenses
1. Direct Expenses –
Payment for receipt of goods and services – wages, The freight, Payment on delivery and sale of railway carriages and goods
2. Indirect Expenses –
increase revenue, the wages, The rent, advertisement, the expense, Insurance etc. Expenditure (Spend): – Spend is the amount paid to increase the profit-earning capacity of the business. Expenses that are paid for the acquisition or acquisition of assets in a business are called expenses.
Gain (Benefit):-
this Is a kind of monetary gain, Which results from business like if 1,00,000 Goods worth Rs. 1,50,000 If sold in rupees 50,000 Receipt of money will be called profit.Basic Accounting Terms
Cost (Cost):-
Raw materials used in business and its functions, Service and loan, The sum of all direct and indirect expenses to be produced or used to make it useful is called cost of goods. The item includes the raw material or assets.
Discount (Deduction, Discount or discount): ‘-
Concession granted to the concession given by the merchant to his customers, It is called discount or discount. It is also called a gift. There are two types of discount –
1. Merchant discountTrade Distcount) : – The seller makes a discount (discounted) to his customers in the face value, ie the list price, while purchasing the goods., It is called a trade discount with the aim of increasing the sale of goods. It is not done in the accounting books
2. Cash discountCash Discount): – Exemption provided for payment of cash or check value in a fixed or fixed period, It is called cash discount, it is used in books of accounts.
Debitor (Debtor or debtor): –
The person, Borrow goods or services from a firm or institution, It is called the debtor or debtor of the business. To debtors’sundry debtors’;It is said that Nainkantal.
Creditor (Creditor or debtor): –
The person, Goods or services are borrowed from a firm or institution, it is called a creditor or a creditor. ‘sundry creditors'(Sundry Creditors) It is said. Like – from Lakhan Shyam2 The printer 20000 Bought for Rs. Receivable (Receivable): Any amount related to business which is to be obtained is called receivable. The buyer is called a debtor when there is a credit sale of goods in the trade, Through which funds are to be obtained Basic Accounting Terms
LiabilitiesPayable) –
There are certain amounts in the business which the merchant has to repay in future.Payable) It is said. Those from whom credit is purchased by trade are creditors of the trade (Creditors) It is said.
Entry (Entry): –
Entering the transaction in the books of account is called Entry.
Whole sale (Turn Over) –
The sum of the cash and credit sales that occur in a certain sum is the total sales or Turn over It is said. Sales cash = sales creditTurn over
Insolvent / Bankrupt: –
A person who is unable to repay his loan is called bankrupt. The liability of such a person is more than the value of his property. In such a situation, he cannot repay his loan in full. He has to take refuge in the court to partially repay the debt. The court allows him to partially repay the debt by declaring him bankrupt, thereby freeing him from his debt.
Bad Debts / Debt: –
Unable to recover the amount due to the inability of the debtor or going bankrupt, For a creditor, it is called bad debt or unapproachable loan.
Debit and credit (Debit and Credit): –
Each account has two sides. The left side is called the debit compound or the deviation and the right side is called the deposit centroid or the integral. Accounting on the left side of an account is called a debit account, which is traditionally abbreviatedDr. It is thus written that accounting on the right side of the account is called deposit account, which is traditionally Cr. Let’s write It is noteworthy that in Indian bookkeeping system, the debit side is on the right and the deposit is on the left.
Commission / Commission or revocation: –
Representative or agent in return for cooperating or representing in business activities ;The remuneration paid to Hamdjad is called Kamshin.
Company (Firm): –
In a general sense, a firm refers to an entity that establishes a partnership or does a business or business function, but in a broader sense each business entity can be referred to as a firm.
Account / Leger / Account :-
Ledger or ledger is a table in which soida are classified according to their nature and are written in order at a place under a heading in simple words., The list that is made after sorting the accounts related to property and income, etc., is an account or ledger.
Account The word is abbreviated in English A / c it happens. This abbreviated form is often used in articles and each account is divided into two sides. Debit the left sideDebit And right side Credit They say
