Book-keeping (also termed) is defined as the art of keeping accounts in a regular and systematic manner. By looking at the books you can not only come to know the financial strength of your company company. This tutorial introduces you to the fundamentals of book-keeping.
An account is a systematic, summarized, and chronological record of transactions concerning a person, properties, expenses, and gains.
Drawing means withdrawal. The amount of money or the value of goods taken by the proprietor form the business for his personal use.
A debtor is that person who owes money to the business on account of credit sale of goods or advice given or services rendered to him.
A creditor is that person to whom the business owes money on account of credit purchase of goods or loan is taken or services received from him.
Assets are the things of value owned by the business. Cash, unsold stock, furniture, money due from debtors fall under the category of assets.
Liability or Equity is the sum of money that the business owes to outsiders. Capital is that part of wealth which is contributed by the proprietor to start, run, and further expand the business.
First things first
Transactions mean a transfer of money or money's worth from one party to another. For example, the sale of books, purchase of furniture, etc.An account is a systematic, summarized, and chronological record of transactions concerning a person, properties, expenses, and gains.
Drawing means withdrawal. The amount of money or the value of goods taken by the proprietor form the business for his personal use.
A debtor is that person who owes money to the business on account of credit sale of goods or advice given or services rendered to him.
A creditor is that person to whom the business owes money on account of credit purchase of goods or loan is taken or services received from him.
Assets are the things of value owned by the business. Cash, unsold stock, furniture, money due from debtors fall under the category of assets.
Liability or Equity is the sum of money that the business owes to outsiders. Capital is that part of wealth which is contributed by the proprietor to start, run, and further expand the business.