Académique Documents
Professionnel Documents
Culture Documents
______________
means record a transaction in book of account. In account every entry has two effects, one debit effect and other credit effect.
Transaction
__________ is an exchange of goods, services, and cash between persons. There are two types of transactions, economical (financial) & noneconomical (non-financial). Only economical transactions are recorded in books of account.
Voucher
Document
which support the business transaction, which has been entered in the book of account. Bills Invoice
Debit
_________
means receivable or thing owned. Suggest the benefit is received. Receiver of benefit is debited.
Paid
Telephone Bill Rs. 1000. Purchased Plant & Machinery worth Rs. 1,00,000. ABC ltd. buys the good on credit from XYZ ltd., worth Rs. 10000
Credit
_________
means
Received
Interest &
give. Suggests that the account has given the benefit. An account which give the benefit is credited.
Dividend. Capital of the business. ABC ltd. buys the good on credit from XYZ ltd., worth Rs. 10000
Journal
A
book in which double entry is made. A transaction when takes place, immediately entered in this book.
Subsidiary book
Separate
journals are kept for particular types of the transaction, which is called as Subsidiary book. E.g., purchase book, cash book, etc.
Account
__________ is a summarized record of the transaction at one place relating to one person, one kind of property or one class of expenses or incomes.
Ledger
It
is a main book of account. In this book all accounts are prepared separately.
Balance
Difference
between the total of debit side and credit side of an account opened in a ledger for a specified period is called __________
Goods
__________
are those products which are bought/produced by businessman for resale to make profit.
Stock
_________
Debtor
Person
who owes debt to business. Which means from whom we have to take money. If goods are sold to a person on credit, then the person is a debtor for us.
ABC
ltd. buys the good on credit from XYZ ltd., worth Rs. 10000
Creditor
________
is a person to whom debt is owed by business. __________ is a person to whom we have to pay money.
ABC
ltd. buys the good on credit from XYZ ltd., worth Rs. 10000
Liability
They
are the debt which a business owns to others. The amount payable by business for goods purchased or for loan taken for services rendered to the business.
Assets
__________
are all those things or rights which are owed business and have monetary value. These are properties which help to run the business.
Fixed
Fixed assets
_________
are those which are not purchased for resale, which help running of the business and whose benefit is available for a long time.
Current assets
__________
are those assets which are constantly converted into cash Other assets whose values go on changing every day
Tangible assets
__________
& Fixtures
Intangible assets
____________
Capital
Amount
Dhirubhai
Drawing
Value
of cash or goods or any other assets withdraw from business by a proprietor for his personal or domestic use.
Mr.
Patel submits Rs. 1,00,000 as donation for getting admission of his son in VTCBB.
Solvent
A
person is said ________ when his assets are more than his liability
Assets
> Liability
Insolvent
A
person is said ________ when his assets are less than his liability
Assets
< Liability
Expense
________
Telephone
Revenue Expense
_________
expense incurred for day to day. Eg. Salary Rent Insurance premium
Capital expenses
_________
Expenses
Bad Debts
If
out of the amount receivable, some amount is not received, from debtor then it is loss of the business.
ABC
ltd. Who bought goods on credit worth Rs. 10,000, has been declared insolvent and there are no scope to receive those money back.
Discount
If
the businessman agree to receive some amount less than the printed price of the amount show in the invoice, the difference is called _________
On
cash purchase of goods worth Rs.1000, the seller charged only Rs. 950 only.
Gross profit
When
the sales are more than the purchase price of the goods plus purchase expense, then difference is the _________
Trading
Net profit
_______
is a surplus left after deducting all expenses from gross profit and adding other incomes to it
Profit