ACCOUNTANCY Made Easy
For Plus 1Class
Chapter-1; Part III
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1. Entity
• Entity means a reality that has a definite individual existence.
• eg: an Individual, an organisation or office, a production unit, a political party
etc etc
2. Transaction is An event involving some value between two or more
entities.
3. Assets are economic resources of an enterprise that can be usefully
expressed in monetary terms.
Assets are items of value used by the business in its operations
4. Liabilities are obligations that an enterprise has to pay at some
time in the future.
They represent creditors’ claims on the firm’s assets
5.CAPITAL
Amount invested by the owner in the firm is known as capital.
It may be brought in the form of cash or assets by the owner for the
business entity capital is an obligation and a claim on the assets of
business.
It is, therefore, shown as capital on the liabilities side of the balance
sheet.
BASIC TERMS IN ACCOUNTING
1. Entity
2. Transaction
3. Assets
4 .Liabilities
5. Capital
6. Sales
7. Revenues
8. Expenses
9. Expenditure
10. Profit
11. Gain
12. Loss
13. Discount
14. Voucher
15. Goods
16. Drawings
17. Purchases
18. Stock
19. Debtors
20. Creditors
RAM’sLearning Center
ACCOUNTANCY Made
Easy
For Plus 1Class
Chapter 1-End of Part III
