What will you Learn?
You will learn basic Accounting terms used in accounts
What will you achieve?
You will know how to use this terms in accounts
1) TRANSACTION :
An activity which involves exchange or transfer of goods or services or fund between two persons
EXAMPLE : purchase of goods , sales of goods
Transactions classified into two :
1) Cash transaction :
Transaction where there is an immediate payment of money for the purchase of an asset
Madhu buys table worth of Rs 15,000 and immediately pay the price of the table is known as cash transaction
2) Credit transaction :
Transaction where the payment is made on the future days is known as credit transaction
Kamalesh purchase furniture worth of Rs 50,000 for his business purposes but he pay the cash on later days is known as credit transaction
2) PROPRIETOR :
A person who owns a business is called proprietor. He contributes money to the business with the intension of earning profit
3) CAPITAL :
It is the money invested by the proprietor in the business
Mr. Sankar starts business with Rs 10,00,000.
Mr. Sankar – PROPRIETOR Rs 10,00,000 – CAPITAL
4) ASSET :
An asset is any resource that a business owns or controls
Assets classified into two :
– TANGIBLE ASSETS.
The assets are those have physical existence . Ex : land , vehicle
– INTANGIBLE ASSETS :
Those assets which doesn’t have physical existence but their possession give benefits to the owner . Ex: goodwill, trademarks
5) LIABILITIES :
Liabilities denotes the money which the proprietor has to pay for other institutions or person . Ex : loans from bank , bills payable.
1) what is asset ? What are the different types of assets ?
2) who is proprietor ?
3) what do you mean by credit transaction ?
4) what is mean by liabilities ?
- 4/4 – Excellent 🌟🌟🌟🌟🌟
- 3/4 – very Good🌟🌟🌟🌟
- 2/4 – good 🌟🌟🌟
- 1/4 – Need to improve 👍 . You can 🤝 try again.
AUTHOR ✍️ :
CIN . Madhushree Sankar