Some Important Definations

1	CAPITAL	All Things which is used to start a business, like cash, land & building, furniture & machinery etc. known as capital. It is liabilities for the business.
2	LIABILITIES	Liabilities mean the responsibilities which we have to do for the others.                 THERE ARE TWO TYPES OF LIABILITIES 2.  Long-Term Liabilities: - Are liabilities that will take longer than 12 months to pay off. 1.  Current Liabilities: - Liabilities That Will Be Paid for In a Short Amount of Time, 12 Months or Less.
3	ASSETS	An Asset is a property of value owned by a business. Physical objects and intangible rights such as money, accounts receivable, machinery, buildings,                 THERE ARE FOUR TYPES OF ASSETS 1.  Current Assets: - Which Is Purchased for Trading Purpose like: - land and building, furniture, Mech, computer etc. 2.  Fixed Assets: -which is purchased for consuming purpose like land and building, furniture, mech etc. 3.  Intangible Assets: - Which assets cannot be touch and see 4.  Tangible Assets: - Which can be touch and see. Like all our assets it can be fixed and current both.
4	DRAWINGS	If the owner of the business withdraw cash or anything for his personal use. Is recorded in business books as drawings.
5	PROFIT	The difference between the amount earned & the amount spent in buying, operating or producing something. The extra amount called profit. Like if anybody sold any product which cost is 500 he sold it in 600 rs then extra received 100 RS. Is profit for him.
6	INCOME	The financial gain earned over a given period of time. It is mostly fixed like rent, salary etc.
7	BAD DEBTS	A Bad debts or uncollectable account is a receivable by a customer or Clint which the business owner or creditor is not able to collect.
8	DEBTORS	Debtor’s means any entity from which we have to take anything or any amount: - an individual, firm, a company or the other legal person could be our debtor.
9	CREDITORS	A party to whom money is owed.
10	RESERVES	Something stood or kept avails for future use or need. There Are Two Type of Reserve 1.  Capital reserve 2.  General reserve
11	REVENUE	For a company it is the total amount of money received by the company for goods sold or services provided during a certain time period.
12	ADVERTISEMENT	A kind of business where the product & its qualities are make known to public for stimulating demand
13	BANK	An org. which accepts deposits of money from the public & gives loan.
14	DIRECT EXPENSES	These are Manufacturing or direct trading expenses. These accounts determine the Gross Profit of the company.
15	INDIRECT EXPENSES	All administrative, selling or non-direct   expenses. Like office rent, salary, advertisement & carriage outward etc.
16	INDIRECT INCOME	These are miscellaneous non-sale income accounts. Example: Rent Received and Interest Received.
17	DIRECT INCOME	These are the income collected from the sale of goods.