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INCOME: IT IS THE AMOUNT earned by the business forbs enduring services
to others.
EXAMPLE: rent received, commission received, in trust received
BANKOF ACCOUNT: There are different sets of book which are used to
record business transaction of varied nature.
EXAMPLE: journal, ledgers, purchagebooks, cashbook, bankbook
VOCHER SYSTEM: A voucher system is a system by means of which and
other evidences of liability are collected, audited, recorded and settled same
documents are
1. Money receipts
2. Payments voucher
3. Journal voucher
LIVE STOCK: HORCES, BULLOCLES, and other animals which are used in
business are called livestock of that business.
TANGABLE ASSTES: SUCH ASSESTS WHICH HAVE PHYSICAL
ERISTANCE, I.E THEY BUSINESS ARE CALLED LIVE STOCK OF THAT
BUSINESS.
INTANGABLE ASSETS: these assets which have no physical existence. I.E
they cannot be seen and touch are terned as intangible assets. Trade marks,
goodwill, copyrights and patents etc.
SYSTEM OF ACCOUNTING
A. SINGLE ENTRY SYSTEM: UNDER THIS SYSTEM ONLY personal
accounts are maintained, under this system complete record of business
transaction is not done during a specified period. Hence, neither the trail
balance for final accounts. This system is simple and less costing but is
adopted By small concerns where as business transactions are free in fact
this is not a system.
B. DOUBLE ENTRY SYSTEM: (IF is generally accepted the most widely
used system of accounting according to his system given every business
transaction will have two aspect
DATE
PARTICULAR
NAME OF
THEACCOUN
T TO BE
DEBIT
TO NAME
OF A/C TO BE
CREDIT
L.F
DEBIT
XXX
CREDIT
XXXXX
DATE COLUMN: IN this column the data on which the transaction book place
is maintained transaction should be recorded straight in the same order in which
they took place [chronological order that 1-1-2010,2-1-2010 and 31-12-2010
etc]