II.Credit sale.Goods purchased but payment will be made after fewdays/month. (Creditors)
Return inwards /Sales return.
If goods sold are returned back to us due to anyreasons, it is called return inwards or sale return.
Resources of the business with the help of which business in carried out.Examples are cash, machinery, furniture, office equipment, vehicle,lands/building, debtors, stock etc.
Assets has two types:
Fixed assets: Those assets which have a long life and are purchased for the purpose to use them in business. Examples are machinery, furniture,office equipment, vehicle, lands/ building etc.II.Those assets which are purchased for the purpose of sale to earn profit.OR those assets in which frequent changes occurred due to businesstransaction. Examples are cash, debtors, stock etc.
Obligations of the business.Examples are creditors, bankovedraft, loan, accrued salary etc liability has two types:I.Current liability:those liabilities which are payable within a year.Examples are creditors, bankoverdraft, accrued salary etc.II.Long term liability:those liabilities which are payable after a year.Examples are loan, debentures etc.
Investments by the owner in the business. Examples are cashfurniture, computer, machinery etc.
Earning of the business.Examples are sale income, commissionreceived, discount received.
Spending of the business.Examples are salary, wages, rent, utility bills, office expenses. Advertisement, fuel, repair etc.
If the owner of the business draws something from the business for his personal use it is called drawing. Examples are: