| Transaction | An activity which involves transfer of money or money’s worth (goods, services, ideas) from one person to another. |
| Cash transaction | It is a transaction which involves immediate cash receipt or immediate cash payment. |
| Credit transaction | It is a transaction in which cash cash is not received or paid immediately, but will be received or paid later.It is the basic unit for measurement in accounting Account used for identifyinga person, or an item in accounting. An account is opened individually for a person, asset, expense, income, etc. In ledger, an account is a summary etc. In ledger, an account is a summary oftransactions under a head |
| Capital | Capital It is the amount invested by the owner or proprietor in an organisation. |
| Drawings | It is the amount of cash or value of goods, assets, etc., withdrawn from the business by the owner for the personal use of the owner. |
| Voucher | Any written or printed document in support of a business transaction is called a voucher. Examples: cash receipt, invoice, cash memo, bank pay- in- slip, etc. |
| Invoice | It is a statement prepared by a seller of of goods to be sent to the buyer. It shows details of quantity, price, value, etc. of the goods and any discount given, finally showing the net amount payable by the buyer. |
| Goods | It includes articles, things or commodities in which a business is dealing with. Example: Furniture will be goods for those who deal in furniture |
| Purchases | Buying of goods with the intention of resale is called purchases. |
| Purchases returns | When goods bought are returned to the suppliers, it is known as purchases returns or returns outward |
| Sales | When goods meant for resale are sold, it is called sales. |
| Sales returns | When goods sold are returned by the customers, customers, it is called as sales returns or returns inward Stock Unsold goods lying in a business on a particular date are known as stock |
| Income | It is the amount receivable or realised from sale of goods and earnings from interest, dividend, commission, etc. |
| Expense | Expense It is the amount incurred in order to produce and sell the goods and services. |
| Solvency | Solvency is the capability of a person or an enterprise to pay the debts. |
| Insolvency | Insolvency is future the incapability of a person or an enterprise to pay the debts. |
| Asset | Any physical thing or right owned that has a monetary value is called asset. |
| Liability | It refers to the financial obligation of the business |
| Debtor | A person who receives a benefit without giving money or money’s worth immediately, but liable to pay in or in due course of time. |
| Creditor | A person who gives a benefit without receiving money or money’s worth immediately but to claim in future. |
Learn All in Tamil © Designed & Developed By Tutor Joes | Privacy Policy | Terms & Conditions