Some Basic Accounting Terminologies Video Lecture - Commerce

In our previous session we so how
accountancy playes
and important role in business and in
decision-making
but before moving on to learning the
record-keeping
in detail it will be easier if they
understand the meaning
of certain basic word all our terminology
that I generally used in accountancy
our previous session we saw
that Peter brought in ten thousand
dollars in his bussiness
this-money that is brought in by the
owner into him business is known as
capital
so peter is capital is ten thousand
dollars and the person who brings in
this capital
and in this case being the sole owner
it known as proprietor
so Peter is a proprietor of his
grocery store business in this month the
may peter went to a furniture mart
and he has purchases a chair and a table for
his store
for two thousand five hundred dollars
the chair and table will help him in
smooth functioning of his business such
things are known as
assets since this is an assetswhich will
be used
for long term in the business and is not
meant for sale it's called a fixed assets
out that now can you tell me what be
peter business involve
it involves buying and selling a grocery
at the main activity right so this
grocery
will be called his goods
goods are always purchase for recell
but good can be different for different
businesses
for Peter furniture
is an assets and grocery
it is good
but what if someone had a business in
furniture what will be his
good in that case furniture would be as
good
in the same way for both single owns a
bookstore
goods will be books when goods are
bought
they are called purschases it and many
goods are sold
they are called Sale
are we good so far let move further
Peter went to a supplier and purschae did
good
worth four thousand dollars he paid the
supplier three thousand dollars cash
and the remaining one thousand dollars
he promised to pay within 45 days
dying the good that were purchase in cash
where payment was immediate I've called
cash-poor james's where had he took
45 days it's time to pay the remaining
money
this is a the credit purchase means
that payment will be made
at feature date what do you
understand from the word credit
it releats to some thought of a benefit right
for the person who gave the benefit or allows the credit
if called the creditors peters suppliers is called a creditors
but peter
has received the benefit of time
this means he has to pay it at a future
date
which means he had been debt he owes
money to the supplier
therefore the peter in the debtor here
because he is in bebt
be done then started selling glossary most
customer paid him in cash for peter
these will be cash sales
a custom purschase good and promised
to be
in one month time
this sale credit sale yeah situation is reverse
so can you tell me who in giving the
credit and who is in debt now
here peter is giving that credit
so he if the creditor and his customer
are in debt
so they are the debtors
okay let's move lets move fuher
peter had to pay his monthly rent and
electricity bill for five hundred
dollars
these are recurring in nature are you
can say they are to be paid
on a day to day on a monthly basis such
payment
are known as expenses
can you recollect what r
assets good and expense can you tell me
the similarity all the difference
between the three
in all the three cases money
is going out but it going out for three
different
Bob this can you tell me what is the
purpose
at 5th for functioning
not meant for sale good for releasing in
expenses for day-to-day
our monthly activities now can you tell
me the difference between
creditor and editor the person who
give credit or benefit of time is up
creditor where at the person who 15th
discredit of dying
and even debt to be on a future date
is not dead bill all of this
Bochy being failing being expenses
any pain when goods or services
are exchanged for money all monies work
I'll call dad transaction then I found
eight
when the mundane because named different
runs action
are recorded under different head known
as account
or a conch head for example all-cash
transactions will be noted on Noah
a cash heading call that a cash account
and all credit for J then with the
supply and
will go under the credit to your account
but go back and see
all the different terms that be covered
in this session
well that's all I hope you enjoyed the
session
in the neck can we going to cover some
more time in large in
me think I'm thanks for watching
one
it