Notes
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purchased ; purchased is the inflow of good in the business which acquire by firm for sale /manufacturing to earn profit
purchased may be either cash or credit
SALE
sale is a outflow of goods from the business to earn profit
sale mey be either cash or credit
PAYMENT
payment is outflow of cash or bank a/c to paid various expenses .and to paid any party . so payment may be cash or bank
RECEIPT
receipt is a inflow of cash or bank business sor various income .. so receipt may be either cash or bank
ACCOUNTING HEAD
ASSET
the value thing onwed by the business are known as assets .these are the property onwed by the business
TYPES OF ASSETS
fixed assets
which all used in a business to earn profit .example -land , building ,machinery , furniture etc
CURRENT ASSETS
those assets which can be converted into the cash within a year like - cash , bank , expenses , accured income etc
stock - the goods availaible for sale on an particular date are termed as stock . it may be od three types
TYPES OF STOCK
raw material
raw material are the item purchased to be used in the priooduct process , which are transformed in to the final product
SEMI FINISHED GOODS
it is the value of party finished or partly manufactured goods
FINISHED GOODS
manufactured and finished goods are ready for sale is known as finished good and final product
DEBTORS
the person or a party
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