I.COM,ACCOUNTING TERMS,JOINT STOCK COMPANY, SINGLE ENTRY, DEPRECIATION, NON TRADING CONCERN, CONSIGNMENT

ACCOUNTING TERMS

BUSINESS.

                   Any regular legal  activity undertaken for the purpose of earning profit.

TRADING BUSINESS. A business in which goods are purcahased and sold without any modification.

 MANUFACTURING BUSINESS.Any business in which goods are purchased and sold after some modification.

SERVING BUSINESS. A business in which services are purchased and sold .

TRADER. A person who performs trading is called trader.

6. MANUFACTURER. A person who manufacture goods is called manufacturer.

7. PROPRIETER. A person who investes money in business and manages it.

8. CAPITAL. The amount with which a trader starts his business.

9.DRAWINGS. The cash or goods taken away from business by the owner for his private use.

10. PURCHASES. Buying of goods for resale purpose.

11.CASH PURCHASES. When goods are purchased and payment is made at the spot.

12. CREDIT PURCHASES. When goods and services are purchased and payment is made at alater date.

13.  PURCHASE RETURN. When goods purchased are returned to supplier due to any reason.

14. DEBIT NOTE. A document stating that a debit entry has been made in an account for purchase return. A debit note is sent by a customer to a supplier to inform the supplier. 

15. SALES. When goods are sold by business at a particular price is called sales.

16. CASH SALES. When goods are sold and price is received at the spot.

17. CREDIT SALES. When goods are sold and price is not received at the spot.

18. SALES RETURN/SALES INWARD. When sold goods are returned by customer to business due to any reason is called sales return.

19. CREDIT NOTE. A note sent by a seller to a buyer, stating that a certain amount has been credited to the buyer's account for returned goods.

20. An invoice is commercial document which is made out whenever one person sells goods to another.

21. TRADE DISCOUNT. When concession is given by a seller to a buyer on  list price of goods at the time of selling.

22. CASH DISCOUNT. It is adeduction allowed by a creditor to a debtor for early payment.

23. DISCOUNT ALLOWED.
A discount allowed is when the seller of goods or services grants a early payment discount to a buyer. 

24.DISCOUNT RECEIVED.   A discount received is the reverse situation, where the buyer of goods or services is granted a discount by the seller due to early payment.
25. COMMISSION. It is remunration for services rendered by one person to another.
26. CREDITOR. A person from whom a business purchases goods on crdit is caalled creditor.
27. DEBTOR. A person to whom business sells goods on credit is called debtor.
28. LIABILITIES. The debts and obligation of business arising fron past transactions.
29. ASSETS. An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected.
30. EXPENDITURE. Expenditure takes place when assets or services are acquired.