Accounting Terms

1.      Capital Account.
2.      Drawing Account.
3.      Secured Loans.
4.      Unsecured Loans.
5.      Provisions.
6.      Duties & Taxes.
7.      Sundry Creditors.
8.      Sundry Debtors.
9.      Bank Account.
10.  Loans and Advances.
11.  Current Liabilities.
12.  Deposits.
13.  Current Assets.
14.  Fixed Assets. 

  

1. Capital Account:

                  The amount invest by the owner to start the business is called Capital 
            Account.

Ex:

                                                                           1.  Praveen Started business by cash

                                                Rs. 10,000/-.

                           Ledger Account:

     Name: Praveen Capital A/c.

Under: Capital A/c.         

       2.  Drawing Account:

                 The amount withdraw by the owner from business for his personal use is
             called drawing account.

                                                          

                          Ledger Account:

Name: Drawing A/c.

                                                   Under: Capital A/c.   
      3. Secured Loans:

                The Loans which we have taken for our business use from the banks 
            through secured is called Secured Loans.

                         Ledger Account:

                Name: Andhra Bank Loan A/c.

                                                   Under: Secured Loan A/c.    

     4. Un-Secured Loans:

               The loans which we are taken without security is called Un-Secured Loans.

Ex:

                                                                  1.  Taken loan from Krishna 

                                                   Rs. 50,000/-.

                                               

                           Ledger Account:

     Name: Krishna Loan A/c.

                                                  Under: Un-Secured Loans A/c.  

     5. Provisions:

                The owners life insurance policy and yearly Income Tax etc. are created
          as Provisions group. 

Ex:

                                                            1.  LIC Paid Rs. 10,000/-.

                                               

                          Ledger Account:

 Name: LIC A/c.

                                                        Under: Provisions A/c. 


     6. Duties & Taxes:

                 All the taxes A/c. are created under this account.

Ex:

                                                                 1.  General Sales tax paid 

                                                                 Rs. 12,000/-.

                                              

                         Ledger Account:

                      Name: General Sales Tax A/c.

                                                      Under: Duties & Taxes A/c. 

     7. Sundry Creditors:

                Sundry Creditors is the person to whom the business gives the money. 

Ex:

                                                                           1.  Purchased goods from Swathi 

                                                                          on credit Rs. 20,00,000/-.

                        Ledger Account:

     Name: Swathi A/c.

                                                       Under: Sundry Creditor A/c.

     8. Sundry Debtors:


                Sundry Debtors is the person who gives money to the business.

Ex:

                                                                           1.  Sold goods to Naveen on credit 

                                                 Rs. 50,000/-.

                      Ledger Account:

     Name: Naveen A/c.

                                                      Under: Sundry Debitor A/c.

      9. Current Liabilities:



                All the outstanding expenses i.e. to paid and bills payable are treated in
             this account. 

Ex:

                                                                  1.  Outstanding salaries paid 

                                                Rs. 10,000/-.

                     Ledger Account:

         Name: Outstanding Salary A/c.

                                               Under: Capital A/c. 


    10. Bank Account:                   
                  When we deposit the cash into Bank we create the name of the A/c. 
             Under this group.

Ex:

                                                                           1.  Cash deposited into Andhra Bank

                                                Rs. 20,000/-.

                    Ledger Account:

  Name: Andhra Bank A/c.

                                                Under: Bank A/c.

    11. Loans & Advances Account:
                   
                  When we give the loans and any advances to other persons from the
            business we create under this group.

Ex:

                                                      1.  Given loan to Sandeep

                                                Rs. 50,000/-.

                   Ledger Account:

     Name: Sandeep Loan A/c.

                                                 Under: Loan & Advances A/c.

    12. Deposit:
                   
                  When we deposit the cash into Bank or firm as fixed deposit we create
             under this group.

Ex:

                                                                           1.  Cash deposited into Saraswathi

                                                                    bank as fixed deposit

                                                      Rs. 1,00,000/-.

                   Ledger Account:

     Name: Saraswathi Bank A/c.

                                                Under: Deposit A/c.

    13. Current Assets:
                   
                  All the prepaid i.e. already paid and any bills received etc., are treated
             under this Assets.

Ex:

                                                           1.  Prepaid Insurance Paid

                                                Rs. 2,000/-.

                   Ledger Account:

     Name: Prepaid Insurance A/c.

                                              Under: Current Assets A/c.

    14. Fixed Assets :
                   
                  Assets are the items which we purchase are sale the item for our 
            business use only those items are treated as assets.

Ex:

                                                    1.  Purchase furniture 

                                                Rs. 15,000/-.

                   Ledger Account:

                                             Name: Furniture A/c.

                                             Under: Fixed Assets A/c.

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