Accounting terminology

 Owner/proprietor: The person who investes his own money to start the business is Known as owner or proprietor

Capital:The amount of money or goods which is invested by the owner into his business is known as capital 

Drawing : The amount of money or goods which are withdrawn by the owner from his business for his personal use is known as drawings

Transaction : The exchange of goods and services with money or on credit by the business with customer or other business is known as transaction

Ex:-Cash , Credit

Debtor:The person to whom goods are sold on credit is known as debtor 

Creditor:The person from whom goods are purchased on credit is known as creditor.

DEBIT: The left hand side of account is called debit 

Credit: The right hand side of account is known as debit

Purchase: The term purchase is use for the purchase of goods not for the purchase of assets when assets are purchased they are recorded to their name 

Sales : the term sales is used for the sale of goods and services and not for the sale of assets when assets are sold they are recorded in their own name

Purchase return:the other name of purchase return us return outward . It is that part of goods whic are returned from the customer to the seller the reason of return may be bad quality , Defective product

Sales return:The other name is return inward.It is that part of goods which are returned from the customer .

Assets:The things which have money value is known as assets.in other wards the things which are owned by the business to get benifits and to receive cash in future is known as assets

Fixed assets : The assets which have been owned by the business for long term use and for producing goods and services ,not for resale is known as fixed assets 

2types

Tangible fixed assets 

The fixed asset which can be seen or touched is known as tangible fixed assets

Ex- furniture, machine 

Intangible fixed assets :the fixed assets which can not be seen or touched is known as intangible fixed assets

Ex- copyright, trademarks, good will

Current assets: the asset which can be converted into cash in a short period of time or with in a year is known as current assets

Ex-cash in hand ,cash in bank debtor, bills receivable

Fictious assets: The assets which Do not have physical existence and money value also is known as fictious assets 

Ex preliminary expenses

Equity: All the claim rights against the asset of the business 

Owners equity: capital

Outsiders equity: liabilities

Events: Any happening which may or may not exert(apply or bring) any financial implications (effect) is known as event it is two types internal and external all the transaction are event and all the events are not transaction

Ex- purchasing goods is a transaction and a event also but attending a party 🎉 is a event but not transaction

Liabilities: The responsibility or obligation to pay the outsider of the business is known as liabilities In other words the amount which a business pays to the outsider is known as liability

Fixed liability: The liabilities which became payable after a period of a year is known as fixed liability ex- debenture, long loans .

Current liabilities: the liability which became payable with in a period of a year. Is known vas current liabilities

Ex- bills payable, short term loan,Creditors,Bank overdraft,ets

Contingent liabilities : the liabilities which may or may not become liable is known as contingent liabilities ex financial cases pending in. The court

Expenses : The amount incurred during the production and sale of goods and services is known as expenses

Expenditure: expenditure can be recurring or non recurring any payment which made for receiving benefits is known vas expenditure 

Capital expenditure : this expenditure is non recurring in nature this is expenditure is used to buy assets which gives benefits for a long time more than 10 years 

Ex- shares ,Assets

Deferred expenditure this expenditure is revenue in nature but. The amount incurred in this expenditure is very high and the benefits received from I'd is for 3- 4 years

Ex-ads

Revenue expenditure : this expenditure is recurring in nature & this expenditure incurs for the purchase of goods and services which are consumed by the financial accounting year

Salay,wages , rent

Discount: the reduction in te price of a product by the entreprise to its customers is known as discount 

Cash discount : The discount which is given by the creditor to its debtor for quick payment bis know as cash discount

Trade discount the discount which is give by the seller to its customers on its mark price at the time of selling is known as trade discount

Revenue : the amount which is earned through business activities is known as revenue

Income : revenue over expenses is known as Income

Income=revenue-expenses

Bad Debt: the amount which a debtor fails to pay and there is no hope of repayment in future bis known as bad Debt

Account: it is a date wise summary of of transaction that is related with the property , person, income ,expenses the transaction of same nature are recorded in one place is known as account .

it's two types personal account,I'm personal account

Personal account: the account which is related with the persons is Known as personal account

Its again decided into two types

Natural Personal account: The account which is is related with the natural person that are made of blood ,bones ,etc are known as natural Personal account ex- bibeks a\c

Haris's a\c

Artificial personal account: the account which is related with the institution , companies is known as artificial personal account it is not made of blood bones but it is treated as personal account according to the eyes of the laws

Ex- Phone pe , Paytm

Representative personal account : The account which is used to represent a personal account or a artificial account is known as representative personal account 

Ex- income received in advance, outstanding expences

Impersonal account: the account which are not related with the persons is known as impersonal account 

Its two types

Real account: the account which is related with the property of the business and can be measured in terms of Money is known as real account 

Its again two types

Tangible real account: this account is related with the property of the person and can be seen and touched

Ex- furniture, machine

Intangible real account: this account is related with the property which can not be seen or touched 

Ex trademarks, Copyright, goodwill

Nominal account - the account is related with the expenses is known as nominal account

Ex- rent,salary wages, commission