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Tally Tutorials
General Accounting Terms
Accounting:
Means method of recording business transactions.
Transaction:
Activities which involve transfer of money or service or goods between two persons or between two accounts.
Goods:
Items to be sold or purchased.
Sales A/C:
Account involves sale of goods.
Purchase A/C:
Account involves purchase of goods.
Sales return A/C:
Account to record the rejection of sold goods.
Purchase return A/C:
Account to record the rejection of purchased goods.
Assets:
Properties of the business.
Liabilities:
Debts which are due by the business.
Capital:
Investment for the business. It is a liability. (Capital = Assets - Liabilities)
Credit:
Giving aspect.
Creditor:
Person who gives the benefit (Eg.: cash).
Debit:
Receiving aspect.
Debtor:
Person who receives the benefit (Eg.: cash).
Inventory:
It refer the handling of stock items in Godowns.
Currency:
- Unit to measure Money.
- Indian Currency is Rupees.
Net worth:
Net worth of a business is the value of the business on the specified date (after assets and liabilities are valued).
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