Do you want to know about basic accounting term?

Transactions    All activities which bring some financial change are called transactions

   e.g. paid a salary to staff  Rs. 15000/-

Event    All activities are called an event

   e.g. jogging, having breakfast

Owner    The person who invests money into the business and bears the risk of the business.
Capital   An amount or asset which is invested in the business by the businessman.

  

 assets   A piece of property or equipment purchased for business use.

  e.g.  Furniture, machinery.

 Liability   Obligation of  re-payment

   e.g. creditors

 debtors   Who owes money
 creditors   Who lent money

 

Income  income refers to net profit.

 Income = revenue – expense

Expense  expense is the cost to generate income.
Revenue The total amount of money the business receives from its customers for its products and services.
Drawings Withdraw cash or goods for personal use by the businessman.
Outstanding expense  due, but not paid
Accrued income  due, but not received
Prepaid expenses  paid in advance

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