Tuesday, August 20, 2013
Assets
Assets
are economical resources that provide benefit to the organization in future are
called assets. For example: Plant, Machinery, Furniture, Land, Building,
Types of Assets
Intangible Assets
Liabilities
The
debt or obligations of business which are payable during short or long time are
called liabilities.
For
example: Goods purchased on credit for Rs. 5000. The amount Rs. 5000 is payable
in future is liability of the business.
Debtors/ Account Receivable
For example: Aslam purchase a book from Asif on credit for Rs. 1000, For Aslam it is account receivable, and he is debtor.
Creditor/ Account Payable
A
person from which goods are purchased on credit is called creditor/Account
Payable.
For example: Aslam purchase a book from Asif on credit for Rs. 1000. For Aslam Rs. 1000 is account payable and he is known as creditor.
Monday, August 19, 2013
Discount Received
A
discount which is received by the buyer or purchaser at the time of payment of
credit purchase is called discount received.
For
example: Aslam purchase a book from Asif on credit for Rs. 1000, on the
condition that he will make payment after 2 month, Asif (seller) give chance to
buyer if he make payment in one month then discount will be allowed at the rate
10%. Aslam make payment before one month.
Discount=
1,000 x 10/100 =100
Aslam
will record Rs. 100 as discount receives and Rs. 900 for payment.
Discount Allowed
A
discount which is given by the seller to the buyer at the time of receipts of
credit sale is called discount allowed.
For
example: Aslam purchase a book from Asif on credit for Rs. 1000, on the
condition that he will make payment after 2 month, Asif (seller) give chance to
buyer if he make payment in one month then discount will be allowed at the rate
10%. Aslam make payment before one month.
Discount=
1,000 x 10/100 =100
Asif
will record Rs. 100 as discount allowed and Rs. 900 for payment.
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