Tally ERP 9 Course | Chapter - 2 Basic Accounting Terms Part 1
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- Опубликовано: 11 сен 2024
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1) Business Transaction :- The term “Business Transaction”
means a financial transaction or event entered into
by the parties and recorded in the books of accounts.
It is a financial event, which can be expressed in terms
of money and brings change in the financial position
of an enterprise.
There are two types of Transaction.
a) Cash Transaction :- When the amount is
transacted immediately on entering in to a
transaction, it is a Cash Transaction.
b) Credit Transaction :- When the amount is not
transacted immediately and promise to pay
later, it is a Credit Transaction.
2) Account :- Account is a summarized record of
transactions relating to a particular head at one
place.
3) Capital :- Capital is the amount invested by the
proprietor or partner in the business. It may be in the
form of money or assets having money value. It is a
liability of the business towards the proprietor or
partner.
4) Drawings :- it is the amount withdrawn or goods taken
by the proprietor for his personal use. Goods so taken
by the proprietor are valued at purchase cost.
Drawings reduce the investment (or capital) of the
owners.
5) Liabilities :- liabilities mean the amount owed
(payable) by the business to outsiders and to the
proprietors.
i) There are two types of liabilities.
a) Current Liabilities (short term liabilities) :- These
are those liabilities which are payable within a
year. Example of current liabilities are creditors ,
bills payable , short term loans , etc.
b) Non - Current Liabilities (Long term liabilities) :-
Long term liabilities are those liabilities which are
payable after a longer period, (more than a
year). Examples of long term liabilities are long
term loans , debentures, equity shares etc.
6)Assets : - Assets are property or legal rights owned by
an individual or business to which money value can
be attached. In other words anything which will
enable the firm to get cash or a benefit in the future,
is an assets. Examples of assets are land , building ,
machinery , furniture , stock , debtors , cash and bank
balances, etc.
i) There are two types of assets.
a) Current assets : - Current assets are those
assets which are retained in the business with the
purpose to convert them into cash within a short
period say, one year. For example goods are
purchased with a purpose to resale and earn
profit.
b) Non Current assets( Fixed Assets) :- Fixed assets
are those assets which are acquired not with the
purpose to resale but to facilitate business
operations and increase the earning capacity of
the business by employing them. Examples of
fixed assets are land , building , machinery ,
computers , vehicles , furniture , etc.
(1) There are two types of Fixed assets
(a) Tangible Assets :- Tangible assets are those
assets which have physical existence , they
can be seen and touched. Examples of
tangible assets are land , building ,
machinery , computer , furniture , goods ,etc.
(b) Intangible Assets :- intangible assets are
those assets which do not have physical
existence , the cannot be seen and touched
Examples of intangible assets are patents ,
goodwill ,trademark , copyrights etc.
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Sir Transaction 4Types ke hote hain na
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sir telly ke andar practical question nhi hote h kya???
10:50
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