Drawings: The amount of cash or any asset withdrawn by the owner of the business for his personal use or domestic use we called as drawings.

• Assets: are the properties or resources which are owned by the business entity. 

Ex: Machinery, stock, goodwell, etc. Liabilities are debts owed by the business entity to outsiders. 

Example: Creditors, Bills payable, bank over draft, etc.

• Debtor: is a person who owes any amount to business. In other words, who purchase goods from business on credit basis is called debtors.

• Creditor: is a person to whom any sum of money is owed by business. Other words the person who give benefits to business and amount payable, such person called creditors. 

• Goods: The term goods includes all commodities, articles or products which are purchased for the purpose of re-sale. 

• Purchases: Any articles, commodities or products bought for resale called purchases. 

• Sales: Any goods purchase by customer called sales mean sale of goods and not the assets. 

Stock: The goods purchased for sale, remain unsold called goods. It is a asset for the business. 

• Profit: The accounts of a year are kept in a single set of books which contains 12 months, called accounting year. Generally it starts from 1st April and ends in 31st march of every year. 

• Expenditure means a payment of cash or incurring a liability for acquiring assets, goods or service. 

• Revenue is the amount that adds to the capital. It represents cash generated by sale of goods or service offered. 

• Discount: Reducing the value of sales called discounting. Discounts are 2 types, Trade Discount and Cash Discount. 

• Voucher: is the document which, helps in reseeding business transactions. 

• Income: It refer to an amount received for sale of goods and service or for use of any rights belonging to business. 

• Gain: Increase in the value of assets or resources of business called gains. Capital represents the owner’s claim or share in the assets of the business. Amount invested by owner of business called capital. 

• Entity: means an area of economic interest of a particular industry or group of industries. Separate books of accounts are kept for each entity