Necounting ~peuvuinoles @ ro a rt tvery businets operation decals with cachavge 4; 1) Business Pravi action in othe finencial cash , goedy and services: “They aesulls ta chawge buyiness “‘bransackiory We ion of the business ¢encemn. Heare, ec rey be defined ay an activity thal brings a change ¥ aypedts of the basinon. 2. Gods Groods ave those wilh which the busine? concen does, buvinc) « Sf a commodity produced ex purchased tor he a are a. Y ez op Assets :— Assets mean conglomeration 4 bone fits Assets the which are essential “ord benofieial for anni tye. business operations. £4 Machinery + loud, furniture b> M Fixed Assets, i fined Amel ave these which provide JONG” term bene pits for qenning the business. change in ‘We value of these assets is minimum. © gxl- Land g Buildings » plant & Machinery * Floating Arsets Floating. Asots ave trese which dedicate thot thir benofits foy summing ‘tke business and which change in value wiliin a short Span of time. £42 Goods, Debtors, carb et «Value of these assets alvocuys change . & Liabilities :- The clobts owed by tre qizm to cubziders & alo to the investors 1.@+, ovwneys are calle ” Liabilities - ft) Creditors , @ank op, Loams, and alo copital - ‘ic e 7. Copital - The amount fravestad by tre corer. for Tenivg o busines is Called "Copital'. “This com be in the form of goods Coih. . %- Drawings '- Cash, Groods oy services draxon by 4h cwner/ investor or self consumption ane. called shrawwings - a jeney to tre busines fitm Is 9- Debtov_!- A person owing mi Debtor’. Tn aire words , a doa dabtor 1s one who gecelved bonofit from thre fom ond ye to “wopay tt. i. Cyeditoy:- Creditor is a parson who lowk more exedit to the firm. Sn otter wovds, crediters means , who ove borogit to the firm ond yet to wecolve the enubvaleut bene yom the firm - ot sett good ono “@debit i so Debit . i O Sek eat going bevel oy giving benoit ts called Git ¥ B. Recount: Account ts @ summorised slaternowt” of Debit § crdir = s cont bene fit or Fecalving bonogit Is & ‘ "2. Gxpenditie !— moun!” Spewh foe acyulrivg gocds or senvices tov Yermivg _pasiness Is known 03 expenditure . Sf 4. be Capital exporditure oY Revenue 2aponclifuve - Ys Copital expenditure :~ “The amouwh spent fox the acy sition of fixed assets which hove long Bfe aud which ove wsefub for the fovg term benefit of the busines is known os capital expindituve — ext Machinery furniture eft» 'Ss Revenue Expendihae »- All expenses -ineursad for yooniny He business dor He crmvent oor Is known, a " Rovere Esperditure’. g'° salarvles 1 Row ater) . Focome 1—The amount carned by a firm ouk Of its busines Feansoction duuriug a posed is called Ineowe- + Choque i- A aus Is an instumenh, by Means of which 0 dopositex can cider tre bank to poy a. codain sum of money 0 to the order of & poron oy to tre beaver of the inshramnent. , Ww. Invoice:— Fo yoice 1s a Statermont sent by the salley to tre purchaser which contains the detains ef the quantity ce goods sold and paice of the geod product, forms avd eondifton Pay meut- ponhiaulors- q Trodivg Accouwk 19. openingy stock t Gt 1s the stock ayailablo ak the baginnlu ef the acecuukivg § Yor * oH Is nig bub the clestuge stock oh Hre proviows « Bt appears in the Trial e@alante owl intldles yao material, wOOrk - in prrogTons ard finished gees « tm. purclases 6 Gt Includes aah ap well os Credit purrehane, ofp goods aa “The purchase returns aye to be deducted from Fro® purchare eb ay wo weed Hie nek — purebaray - ® “ , | ai tis yoni steams in_prodil Les Atcount # ep, “7 aplanalion to Ihe cyermuneralion paid Jo the employees those % salaries ¢ ab 1S povl reipatod in hose who have indie ct ly f1 afice vlayt ‘ Oo. Renks Rates and Vases + taxes paid te production . “this inchuclos, vont incurted on office, reare house, Showy TOW to docal bodie, and Govt. his tem is an expenditure thence, it side of the propil G Loss ale v— gt bs a promium paid * ins} fro, cthept of ynalorial Psornium js an expenditure , it's dobit side of the. propit § Loe ale” barge. Hence at is bth, interot o obe cxedited 4° the appears in the debit lo the gnsutance compen and ands “nsuuvarn fo COVOA “He visk ef the fir - Since to be postecl 7 he 4. Potent t— Toteved poid is a finer cial a debitad to profit | Loss acouuk. As contr yeccived = 8 firancial gains so this is + propit § few aceourh - 5+ Commission +— Commission paid is to the pal ole 4 Commission gecoived tonca it 1S 40 be Credited +0 the profit Lov account 6+ _piscount. 2 prsceunk muans Pn a ca dacounk not ‘Trade abxouut puccuul veceivedt ly to be cxadited oa piscount allowed + ig to ba debitod to the 28 ' : ye. Carriadje on solar t~' Carriage! - 1s 40 be understood in eciouwary 3° Carrioge aaeend (ive Korviage on purchase) ond th Fs to be placed the cbit siete tre “Trad Ac - A purchase 4 mg Accouut immediately ater indived™ expense charguable je am income - L account, arvinge cuttonrel [ eorvieg e_on_sale is on jndived cxpendsture . ‘ Hered, itr 15 dobitect ip tie profit omc {oss Accouvk - @. printivg and_ stationery, +— fr iw a Youline ¢fice expenditure - pence’, it & Aobifcel to tke profit § los acount - 9. advertisement ¢— This expoucliture is feo Large ard the vetams gre fo be spread oye. to more Hain ene yoos. “Than, it Should bo traalact a4 ' dofforect yeveruwe expondituy " anc portion ¢. tadverfisomont expenses" May be dobitel to tre pat ale.2 Plant fimos, the good come seqpuite me yy business 4004s 91 prvtlhaye — Relunye | Relirs ouliot * ; may vol sail Prachayed te dey bee binre ss cu nf tito vier quale of inhovion quently Ae ey we deducted Ad 0 brown OF 7 ato 1S 10 be at an “Wwe chal o1 HMavictards , may be whal we ardeved Or thane eaves ndayned «tence, Tis Horn sheatd be pel porchyase ywose who vf ao ferchages , to devive fhe workers rows. We gy the ghould be fs the yemunoration pod to in the preductton Pp wages ele llages = Ht 4 lave aevect ly Call then as" Dhect tongs Productive monufadin ir account Is nek prepared, “the wage debited to Ohe “Trading Account - a : ond it is am item of indirect expenditure panticipatect salavty 1 Salary heat be debited to profit F Joss accou + oy Dineck Expenses }—"Here ave the items ef expors Purychaye geeds awd brivg them to the odlow? one a produ. “Those Items will appre jo tho debit side ef TRadivg ale - '. canviage & Cartage 9. Friegur, import , sacise diy st. octsci, Clearing chargas 4. Gos Sroater, quel % Motive Pot gout, fares, inguvovee - 5. factory mg g heativg 6 Factory #. Consumable stove v. Royaltion ee. 9s. sales i— Sale qf goods. sale include cosh sales g cocditsalo , Since, the nok sales ave to be shown in the credit side. Bb. sales yolusns +— The sales vefiens to be deducted trom 4he 10% Sales. saler 4 asgots Should not be mixeck up wit sale Ca foods * stock 1— Tt is tre unsold stock Soph in the gocwon. final accounts, especially, aptey the closing stock is +0 be Oy inured +0 produc the at Closi At the time of Preparivg preparation of the pried Balance , he valued -to ay popreciation i 3 PF ; and Ropaias :— Opreciation and sepains 4 © / Peta oboe tumiture , buildings ete, is a commen nen — fad nator on ‘adi main tenanco expenditure debitable to the pac ak. We . He Legal Changes Audit Joos :— Legal charges ave te chowges imeurred 40 proto the vigluts ef he fen ot fight agaunst any firm on a justified cause. 20. ‘his Jeol charges way be dobited to “the PEL ofe. W. Bad tcl, Reserve for tad debts § Discount on Dobtors + The ave miscdllancow, [esses suafamed by re doing business on credit basis. To arrve ot trac picture nat peopl, thoe losses aye to be debited to the Pq Cale. tz bows | prept on _sale_ of facts 1 lesy on sale af anes Ms & secede Toe Eiwasit 1s a fous to the business fem If should Le debited to the PL ale. similody, th proyt ‘etch on sale of atsets the same is to be Cxectited fo “lm pe Lale.