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Accounting

This document defines key accounting terms and concepts. It explains that accounting is the art of recording, classifying, summarizing, and interpreting financial information. It also defines bookkeeping as recording business transactions in accounts. Some other terms defined include transactions, business, proprietor, capital, goods, drawings, purchases, sales, assets, liabilities, income, expenditure, expense, accounts, vouchers, the accounting equation, journal, narration, ledger, trial balance, capital expenditure, and revenue expenditure.

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Rehan Sheikh
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27 views

Accounting

This document defines key accounting terms and concepts. It explains that accounting is the art of recording, classifying, summarizing, and interpreting financial information. It also defines bookkeeping as recording business transactions in accounts. Some other terms defined include transactions, business, proprietor, capital, goods, drawings, purchases, sales, assets, liabilities, income, expenditure, expense, accounts, vouchers, the accounting equation, journal, narration, ledger, trial balance, capital expenditure, and revenue expenditure.

Uploaded by

Rehan Sheikh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
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what is accounting ?

an art of recording,classifying,summarizing,and interpreting financial information is called


accounting.
2.what is book keeping?
an art of recording business transcation in the book of accounts is called book keeping.
3.transcation?
any dealing between two person or thing is called transcation.cash transcation .credit transcation.
4.business?
any legal acitivites undertaken to earn profit.
5.properitor?
he is the owner of the business he invest capital in business .
6.capital.
the amount with which a business is started is called capital.
7.goods.
the things which are manufactured for selling purpose is known as goods.
8.drawing?
cash or goods taken away by the properitor from business for personal use is called drawing.
9.when the sealable goodsare bought in business is called purchases/.cash purchase .credit
purchase.
10.sales?
goods sold are called sales .sash sale .credit sale
11.assets.?
the things which have long value and physical existance.is caled assets.
12.liabilites?
those obelagition or debt which are payble by business and other is called liabilites.
13commision?
it is the remuneration for the services rendered by one person to another is called commission.
14.income?
the price received by a business agiinst goods sold or servicesrenderd to customers is called
income.
15?expenditure?
expenditure takes place is spent to acquire an asset .the benefit of which willremain for many
years.
16?expence?
the cost of doing busoness is called expence.
17.account?
a summarized record of all transcation relating to a particular person is called account.
18.voucher?
any written evidencein support of business transaction is called voucher.
19.accounting equation?
asset =liabilities +capital
20. journal?
the word journal has been drived from french word jour which mean
daily journal is book in which transcation are recorded according to date wise.
21.narration?
it is short expelation write below each transcation.
22.ledger ?
ladger is a book which cintain a classifed record of all similar transcation of the business.
23?trial balance?trial balance is a statement prepared by taking out the debit and credit balance
of all account appearing in a leadger.
24.capital expenditure?
all expenditure which are incurred on the purchase of fixed assets the benifit of which extend to
several year is called.......
25?revinue expenditure?
all day to day expence incurred during the ordinary course of business is called ......

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