Learn Accounting basic and numerical

Accounting Definition

The language of business is known as Accounting.

Or

A formal record of financial statement

Bookkeeping

The method in which record financial affair of business

Debtor

A person that owes money for third party

Creditor

A person that has extended creditor another party

Basic Things which have vital role in Accounting

·        Assets

·        Liabilities

·        Capital

·        Drawing

·        Income

·        expense

Assets

Those things which owned by business is known as Assest

Example cash, buildings fan etc

Types of Assets

·        Current assets

·        Non current assets

·        Fixed assets

·        Intangible assets

Current assets

The asset which are in transfer form is known as current asset

Non Current Assets

The asset which is not in current form is known as non current asset example building

Fixed assets

The asset which are physical form and fixed in business is known as fixed asset example fan,watch

Intangible assets

Those assets which are not in physical form known as intangible assets example copy right, goodwill

Liabilities

Those things which owed by business is known as liabilities

Accountpayable

Types of liabilities

·        Short term liabilities

·        Long term liabilities

Short term liabilities

Those liabilities which are pay for less then one year is known as short term liabilities example account payable

Long term liabilities

Those liabilities which are pay for more then one year is known as long term liabilities example note t payable

Capital

It is represent accumulated wealth of  business

Or

A person who invest money in a business is known as capital

Drawing

A Person who withdraw money for his personal use is known as drawing

Income

The money which is excess to the expense in business is known as income

Expense

The money which is excess to the income in business is known as expense

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