1.

Accounting: an art of classifying,summarising

and recording trasactions in terms of money
2. Accural basis: Revenue and expenses taken
into consideration on the basis of the
accounting period to which they relate
3. Personal, real and nominal accounts
4. Journal is a proper book of original entry
whereas ledger is the second book
5. Petty cash book is provisanal account for small
transactions taking place in business everyday
6. Depriciation: fall in quantity or value of fixed
assets due to physical wear and tear in use or
passage of time
7. Depletion: Physical detroitation or exhaustion
of natural resources.
8. Amortaisation: Loss in economic value of
intangible assets like patent, trade mark, good
will, ect.
9. Inventory: complete list of goods that a
business has for sale at a given time.
10. Capital expenditure: incurred to purchase
fixed assets.
11. Revenue expenditure: incurred to purchase
material and services.
12. Trading account is used to find gross
profit or loss
13. NPOs are orgasational institutes set up for
promoting art culture, education and other
social and charitable purposes.
14. Dissolution of form means change in
partnersgip pattern of the firm
15. Sec 79 permits issue of shares at discount.
16. Debentures are the part of loan capital
which the company is liable to pay with the
interest.
17. Amalgamation: process in wwhich two
organisations joins to make one large one
18. Abosrtion: when an existing company take
over the business of another existing company
19. Reconstruction is the process of
rearrangement of capital structure of the
company
20.