BASICS TERM OF ACCOUNTING

    https://educationallyear.blogspot.com/2020/07/basics-term-of-accounting.html

                                    BASIC OF ACCOUNTS

• CALENDER YEAR ARE NOT USED TO ACCOUNTS

           1 JANURARY -31 DECEMBER ARE NOT VAILD .

• ACCOUNTS ONLY USE A  FINANCIAL YEAR .

             1APRIL - 31MARCH 

                2020          2019

• EXPENSES :-  SPENDING OF MONEY . 
• REVENUE:-  INCOME .

HOW TO BE CALCULATE PROFIT & LOSS IN ACCOUNT ?

  ALL YEAR  GET EXPENSES - REVENUE 

IS CALCULATER A PROFITS & LOSSES .

• PRODUCT ARE SELL & PURCHASE ARE CALLED GOODS . 
• ANY PERSON TO PROVIDE A TUTION IS CALLED A SERVICES .

PURCHASE ARE TWO TYPE :-  

• FOR CASH :-  PURCHASE GOODS FOR CASH 

                                   PURCHASE GOODS ON CREDIT

• ON CREDIT :-  SALES GOODS FOR CASH 

                                      SALES GOODS ON CREDIT

   WHAT IS EXPENSES ?

             THREE TYPES OF EXPENSES :-

• EXPENSES :-  MONEY PAY IN TIME . 
• OUTSTANDING EXPENSES :-  UNPAID EXPENSES , EXPENSES DUE BUT NOT PAID
• PREPAID EXPENSES :-  EXPENSES PAID IN ADVANCE .

WHAT IS REVENUE  ?     

THREE TYPE OF REVENUE :-

• INCOME RECEIVED :-  MONEY RECEVIED IN TIME 
• ACCURED INCOME :-  OUTSTANIDING INCOME , INCOME DUE BUT NOT RECEVIED..
• ADVANCE INCOME:- INCOME RECEIVED IN ADVANCE 

     OWNER EQUALITY / CAPITAL :-  OWNER HAS EXPENSE TO MONEY FOR START A BUSNIESS IS CALLED A CAPITAL.

ADDITIONAL CAPITAL:-  REGUALARELY CAPITAL INTRODUECD BY OWNER INTO BUSINESS IS CALLED ADDITIONAL CAPITAL .

• DRAWINGS :-   MONEY WITHDRAW BY OWNER FROM BUSINESS FOR PERSONAL USE.
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• LIABILITY:-  IT IS AN AMOUNT WHICH RECEVIED  TODAY BUT REPAY IN FUTURE .
• 
  
•  CREDITOR :-  THE PERSON FROM WHOM OUR FIRM PURCHASE A GOODS THEIR ON CREDIT .
• 
  
•  BILL PAYABLE :-  IN THIS TERM A ONE PAPER HOLD TO  STAMP PAPER SIGNATURE A CUSTMOR .
• 
  
• TRADE PAYABLE:-  BILLS & CREDITOR TOTAL ARE CALLED TRADE PAYABLE . 
• 
  
• ASSETS:-  CAPITAL AND LIABLITY ARE CALLED ASSETS .

        ASSETS ARE CASH, BANK , MACHINERY, FURNITURE, COMPUTER .

• DEBTOR:- THE PERSON TO WHOM OUR FIRM SOLD GOODS ON CREDITS . 
• 
  
• TRADE RECEVIABLE:- DEBTOR & BILL RECEVIABLE TOTAL ARE CALLED TRADE RECEVIABLE.