Accounting Terminologies

Account- Account is written or oral description of

transaction and event.

Accounting- Process of maintaining account is

known as Accounting.
or
Accounting is the process of recording financial
transactions pertaining to a business.
 
 Cont…d
Capital- Funds introduced by owner to start
a business is known as Capital
Liability- Amount borrowed from outsider for
the business purpose is known as Liability
Assets- Anything belongs to business and used
for future operation of the business such as
Land & building , Plant & Machinery and
Stock etc are called Assets
 Cont…d
Expense- Amount spent to generate
revenue/income is known as Expense
Income- Total amount received during a
particular period by doing any business
activities is known as Income
Drawings- Cash or Goods taken by owner for
his/her personal use is known as Drawings
 Cont…d
Event – Any happenings in the business is Event
Transaction- Any exchange of goods and
services between business and outsider for cash
or on credit is known as Transaction
Debtors- The person or organization to whom
credit sale is made , are known as Debtors
Creditors – The person or organization that
supply the goods or anything to business on
credit basis are known as Creditors.