LIABILITY | EXPENSE

LIABILITY:

These liability are those liability which have to pay by the proprietor for long time or sort time.

Liability are two type:

Current Liability

These liability are those liability which have to pay by the proprietor for soft term to own business out sides investors, shares holders, soft term loan or creditors, etc.

Fixed Liability

These liability are those liability which have to pay by the proprietor for long term to own business, partners, debenture or long term loan.

EXPENSE:

These expenses are those expenses which have to spend by the proprietor for business activities.

These are two type:

Direct expenses:

These expenses are those expenses which have to spend by the proprietor directly.

For examples:

Carriage - in & out word
Fright
Transport
Tax
Fuel
Wages
Posts and stamp
Rent, etc.

Indirect expenses

These expenses are those expenses which have to spend by the proprietor indirectly for business purpose.

For examples:

~~full-width~~

Advertisement
Books & Stationary
Business promotion
Staff welfare
Medical allowance
Provident fund
Daily allowance
Travels allowance
House rent allowance
Rent paid
Interest paid
Commission
Discount allowance, etc.

Comments

INCOME | CREDITOR | DEBTOR

INCOME These income are those income which have to receive for selling goods and services. Type of income: Direct Income These income are those income which have to receive to supplier for direct selling to cash. For example Sales for cash Assets for cash Service for cash, etc. Indirect Income These income are those income which have to receive indirectly. For example Discount receive Interest receive Commission Bonus Gift, etc. full-width Creditor: A person who takes the cash and gives the goods. Debtor: A person who gives the cash and receive the goods.

ACCOUNTS | PERSONAL ACCOUNT | IMPERSONAL ACCOUNT

Classification of accounts ACCOUNTS It is a way or method to maintain the all business daily transactions as a record for maintaining its all balance in which include company expanses and income, profit and loss, purchase and sales, etc. That is knows as account. Types of accounts: Personal Account: These account are those account in which the transaction shall be maintained in between two person to company, one person one bank or one company one company. Rules: Cr. - Credit Account Dr. - Debit Account. Debit the receiver always Dr. Credit the given always Cr. Examples: Ram sold goods to Mohan. Mohan a/c Dr. Ram a/c Cr. Mohan purchase goods from Ram. Mohan a/c Dr. Ram a/c Cr. Mohan purchase furniture from Ram. Mohan a/c Dr. Ram a/c Cr. Mohan sold goods to Mohan. Mohan a/c Dr. Ram a/c Cr. full-width Impersonal Account: These are two type: Real account Nominal account Real account: These account are those account which have to maintain as the transaction in which we can know tha...

Creator Plus✍️✍️

Search This Blog