বেসিক একাউন্টিং টার্ম
Business Transaction: It means a financial transaction entered into by two parties and recorded in books of account. It is expressed in terms of money.
Examples: Purchase of goods, sales of goods, rent paid, salary paid, machine purchase etc.
Goods: Goods are the physical items of trade.
Purchase Account: The term ‘Purchase’ is used for purchase of goods for resale or for producing finished product which are to be sold. It includes both cash and credit purchase.
Sales Account: the term ‘sale’ is used for sale of goods which are dealt by the form. The term ‘sale’ includes both cash and credit sales.
Stock (also called inventory): Stock is a tangible assets held by the enterprise (from) by the purpose of production or sale of goods generally we calculate stock at the beginning of year and end of year.
Opening stock: Stock held at the beginning of year.
Closing stock: Stock held at the end of year.
Stock may be divided in 3 parts Raw Materials, Work-in-Progress, and Finished Goods.
Purchase Return Account: it is also called return outward. Goods purchase may be return any reason (example: defect in quality) Goods so returned are called purchase return (return outward).
Sales Return Account: It is also called return inward. Goods sold when return by customer are called sales return (return inward).
Purchase of goods:
Debtor: Debtor is a person to whom from has sold goods or services on credit, in ordinary course of business.
Bills receivable: it means a bill of exchange is accepted by debtor, the amount which will be received by specified date.
Trade Receivable: Debtor + Bills receivable.
Sales of goods:
Creditors: Creditor is a person from whom an enterprise (from) purchases goods or services on credit.
Bills payable: Bills payable means a bill of exchange accepted by from to pay fixed amount on a specified date.
Trade payable: Creditor + Bills payable.
Revenue Expenditure: it is an expenditure incurred the benefit of which is consumed with in the current accounting period. For example: rent paid, salary paid, interest paid, wages paid, telephone bill paid, electricity bill paid.
Capital Expenditure: it is an expenditure incurred the benefit of which consumed in future it is also called assets. Such expenditures are incurred acquire assets or to increase the efficiency of the assets.
Non-Current Assets: those assets which are held by the business from a long term point of view (for more than one year). For example: Machine, Building, Furniture, Goodwill, long term investment etc.
Meaning of Fixed Assets: it is part of non-current assets.
Tangible Fixed Assets: those fixed assets which have their physical existence. It means they can be seen, touch. For example: Machine, Building, and Furniture.
Intangible Fixed assets: those fixed assets which do not have their physical existence. It means they cannot be seen, touch. For example: Machine, Building, and Furniture.
Current Assets: those assets which are held by the firm with the purpose of converting them into cash or for using them with in a short period (within in one year). For example: Stock, Debtors, Bills Receivables, Cash, and Bank etc.
Fictitious Assets: it is an expenditure incurred the benefit of which consumed in future it is also called assets. Such expenditures are incurred acquire assets or to increase the efficiency of the assets.
Capital: The amount invested by owner into the business is called capital.
Liability: The amount invested by person other than owner into the business is called liability. It is the claim of outsider into the business. Liabilities are always payable on due date. Example-bank loan, creditors, bills payables, mortgage.
Liabilities can be divided into two parts:
Non-current liabilities: Those liabilities which are payable after a period of more than one year from the end of accounting year. It is also called long term liability. Example: Long term loan, debenture, mortgage etc.
Current Liabilities: Those liabilities which are payable within one year from the end of current accounting year. Example: Creditor, Bills payables, Expense payable, Bank O/D.
Drawings: It is the amount withdrawn on goods taken by the proprietor (Owner) for the personal use.
Revenue Receipt: Amount receipt or receivable from sale of goods and services in normal course of business. Example: Interest on investment, sale of scrap goods.
Capital receipt: Amount receipt or receivable from sources which are not in revenue in service. It is also called revenue of the business. Example: Sale of machine, Bank loan, Sale of building.