Terminology of Accounting

There are following accounting terminology given bellow:

1. Trade (व्यापार): Sale or purchase of product for the purpose of getting profit is known as Trade.
2.   Profession (पेशा): Profession is a type of job that requires special educations training or skill.
3.   Business (व्यावसाय): The activity of making, buying, or selling goods or providing services in exchange for money is known as business.
4. Proprietor (व्यापार का स्वामी): The ‘proprietor’ is the owner of the business.
5. Owner (व्यापार का मालिक): A party that possess the exclusive right to hold, use, benefit from, enjoy, convey, transfer, and otherwise dispose of an asset or property.
6. Capital(पूँजी): Capital is the amount invested by a proprietor on his business.
7. Drawings (आहरण): Drawings are money or assets that are withdraw from a company’s accounts by its owner for person use and must be recorded as a reduction of assets.
8. Goods (माल): Products are classified into goods. Goods are items that are tangible such as – books, pens, salt, shoes, hats etc.
9. Purchase (क्रय): To buy a product or service is called purchase. When goods purchased with immediate payment of cash are called cash purchases and goods purchased on credit are called credit purchases.
10. Sales (विक्रय): Sales refer to the amount of goods sold by a business. Sales made against immediate payment of cash are called cash sales. Sales on credit are called credit sales.
11. Purchase return (क्रय वापसी): Goods that have been purchased but are returned to the seller before consumption due to reasons like poor quality, are called Purchase Returns.
12. Sales return (विक्रय वापसी): Goods that have been sold but are returned by the buyer before consumption, due to reasons like poor quality, are called Sales Returns.
13. Stock (रहतिया):Unsold goods, raw material, scrap, etc. that lie with the business are collectively known as ‘stock’.
14. Creditors (लेनदार): A person or firm to whom we purchase goods or service on credit is called creditors.
15. Debtors (देनदार):A person or firm to whom we sale goods or service on credit is called debtors.
16. Liabilities (दायित्व): Liabilities are defined as a company’s legal debts or obligation that arise during the course of business operations.
    • Fixed Liabilities (स्थायी दायित्व): A fixed liabilities are a type of debt. Bonds, mortgages, and loans that are payable over a firm exceeding one year would be fixed liabilities.
    • Current Liabilities (चालूदायित्व): A current liabilities are an obligation that is payable within one year.
17. Assets (संपत्ति): An asset is anything of value that belong to the business, can be converted into cash. Assets are owned by individuals, businesses, and governments.
    • Fixed Assets (स्थायी संपत्ति): An asset that is not consumed or sold during the normal course of business such as land, buildings, equipment’s, machinery, vehicles, leasehold improvements, and other such items.
    • Current Assets (चालू संपत्ति): A current assets are an item on an entity’s balance sheet that is either cash, a cash equipment, or which can be converted into cash within one year.
18. Expenses (व्यय): The amount spent by a business to conduct its activities, is called Expense.
    • Direct Expense (प्रत्यक्ष व्यय): Direct expenses are expenses that you can attribute directly to the production of a good. For example- freight, carriage, wages etc.
    • Indirect Expense (अप्रत्यक्ष व्यय): All expenses other than direct expenses are assumed an indirect expense. Such expenses have no relationship with purchases of goods. For example- Rent of building, salaries of employees etc.
19. Revenue(राजस्व): The income generated from sale of goods or services or any other use of capital or assets, associated with the main operations of an organization before any cots or expense are deducted.
20. Income (आय):Money that is earned from work, investment, business etc.Income is the revenue earned by a business minus the expense incurred in order to earn such revenue.
21. Direct Income (प्रत्यक्षआय): Direct Income is one which is earned directly by the way of business activities.
22. Indirect Income (अप्रत्यक्षआय): Indirect Incomes is one which is earned by way of Non- business activities. For example- Interest Received, Commission Received, Rent Received etc.
23. Discount (छूट/बट्टा): A discount is a reduction in the price of a product or service that is offered by the seller in exchange for early payment by the buyer.
    • Trade Discount(व्यापारिक छूट): A trade discount is the amount by which a manufacturer reduces the retail price of a product when it sells to a reseller, rather than to end customers.
    • Cash discount(नकद छुट): A cash discount is a deduction allowed by seller of goods or by the provider of services in order to motivate the customer to pay within a specified time.
24. Bad debts (डूबतऋण): The term bad debts usually refer to accounts receivable that will not be calculated.
25. Transaction (लेंनदेंन): A transaction is an agreement between a buyer and a seller to exchange goods, services, or financial instruments.
    • Cash transaction: A cash transaction is one where money is immediately received or paid in the form of cash.
    • Credit transaction: A credit transaction is one where money is paid later, but the benefits are enjoyed immediately.
26. Voucher (प्रमाणक): A voucher is a document containing the details of a financial transaction.
27. Investment (विनियोग): An asset or item that is purchased with the hope that it will generate income or appreciate in the future.
28. Bill Receivable (प्राप्यविपत्र): A bill receivable is a document that your customer formally agrees to pay at some future date.
29. Bill Payable (देय विपत्र): A bill payable is a document which shows the amount owed for goods or services received on credit.
30. Overdraft (अधिविकर्ष): An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero.
31. Reserve (संचय): The earnings of a business through its activities and operations, is called Revenue.
32. Brokerage (दलाली): A fee charged by an agent, or agent’s company to facilitate transaction between buyers and Sellers.
33. Accrued Income (उपार्जित आय): Accrued income is income which has been earned but not yet received. Income must be recorded in the accounting period in which it is earned.
34. Unaccrued Income (अनुपार्जित आय): When a businessman receives advance income up to the end of current year or when service will be rendered in the next year then such income is called Unaccrued Income.
35. Business Person (व्यापारी): A business person (also businessman or businesswoman) is someone who works at a job that focuses on making money. Very broadly it can mean anyone who works in industry or commerce. It is someone who works in the of a company.
36. Accounting Period (लेखांकन अवधि): An accounting period is an established range of time during which accounting functions are performed, aggregated, and analyzed. An accounting period may consist of weeks, months, quarters, calendar years, or fiscal years.
37. Accounting Entry (लेखा प्रविष्टि): In accounting, an entry refers to a record of a financial transaction in a company’s accounting records. It includes the details of the transaction, such as the date, amount, and type of transaction, as well as the account or accounts that are affected by the transaction. Entries are used to maintain accurate and up-to-date records of a company’s financial activities and are an important part of the process of preparing financial statements, such as balance sheets and income statements.
38. Debit side (डेबिट पक्ष): In accounting, the debit side of an account refers to the left side of the account, which is used to record increases in assets, expenses, and withdrawals. When a transaction is recorded on the debit side of an account, it means that the account has increased in value. For example, if a company purchases ₹ 100 of office supplies, the office supplies account would be debited (increased) by ₹ 100, and the cash account would be credited (decreased) by ₹100. This double-entry system of accounting helps ensure the accuracy and integrity of financial records by requiring that every transaction be recorded in at least two accounts.
39. Credit Side (क्रेडिट पक्ष):   In accounting, the credit side of an account refers to the right-hand side of the account. It is used to record credits, which are defined as the opposite of debits. Credits are typically recorded on the right-hand side of an account because, in double-entry bookkeeping, every financial transaction involves two equal and opposite entries. One entry is a debit to one account and a credit to another account. For example, if you receive ₹ 100 in cash, you will debit your cash account (because you are increasing your cash balance) and credit your revenue account (because you are increasing your revenue). This is because the cash that you receive represents an increase in your assets and is therefore recorded as a debit, while the revenue that you earn represents an increase in your equity and is therefore recorded as a credit.
40. . Commission: Commission is a payment made to an individual or organization for selling a product or service. Commission is typically a percentage of the sale price of the product or service. Commission can be set up as a fixed amount or as a percentage of the sale. It is usually used as a method of compensating salespeople or agents for their efforts in promoting and selling a company’s products or services.
41. Bankrupt (दिवालिया): Bankruptcy is a legal status that a business or individual may be declared in when they are unable to pay their debts. When a business or individual is declared bankrupt, they are no longer able to meet their financial obligations, and their assets may be seized and sold in order to pay off their debts. In accounting, bankruptcy is a significant event because it has a major impact on the financial statements of the business or individual. The bankruptcy process involves the liquidation of assets, which can result in significant losses being recorded on the business’s balance sheet. Additionally, the business’s income and expenses may be significantly impacted by the bankruptcy process, which can affect the business’s overall profitability.
42. Cash Account(नकद खाता): A cash account is a type of account in accounting that is used to track the inflow and outflow of cash in a business. The cash account is used to record transactions such as cash sales, cash purchases, and cash payments for expenses.
43. Bank Account(बैंक खाता): A bank account is a financial account held at a bank or other financial institution that allows an individual or business to deposit, withdraw, and manage their money. Bank accounts can be either checking accounts, which are used for everyday financial transactions, or savings accounts, which are used to save money and earn interest. In accounting, a bank account is a type of asset account that is used to track the inflow and outflow of cash in a business. The bank account is used to record transactions such as deposits, withdrawals, and bank charges. The bank account is an important account in accounting because it is used to manage the business’s liquidity, which is the ability to pay its bills and meet its financial obligations as they come due. The balance in the bank account is also used to prepare the cash budget, which is a financial plan that forecasts the expected cash inflows and outflows of the business over a certain period of time.
44. Salary Account(वेतन खाता): A salary account is a type of account in accounting that is used to track the payment of salaries to employees. The salary account is used to record the amount of salary paid to each employee.
45. Outstanding Salary Account(बकाया वेतन खाता): Outstanding salary is salary that has been earned by an employee but has not yet been paid. Outstanding salary can arise when an employee has worked overtime or has not yet been paid for work that has been completed.
46. Advance Salary Account(अग्रिम वेतन खाता): Advance salary is salary that is paid to an employee before it is earned. Advance salary is usually paid to an employee in anticipation of future work that will be performed.
47. Goodwill Account(ख्याति खाता): Goodwill is an intangible asset that represents the value of a business’s reputation and customer relationships. Goodwill is often associated with the value of a business’s brand and is an important factor in the overall value of a business.