Income Income is the increase in the networth of the organisation either from business activity or other activities
Expenses The amount spent in the process of earning revenue is called as expense. Rent, wages, salaries,water charges, electricity charges are the examples of expenses.
Loss Loss is the gross decrease in the assets or gross increase in liabilities.
Profit Profit is the excess of revenue over expenditure in an accounting year.
Purchase The total amount of goods procured by a business concer for cash or on credit for the purpose of sale or use is known as purchases
Sale The income earned from the sale of goods or services rendered. The amount received from the sale of fixed assets is not treated as sales
Debtors Debtor is a person who owe money to the business
Creditor Creditor are person who claim for money against the business for any goods supplied or services rendered by them on credit
No comments:
Post a Comment