1.Journal: A journal is accounting record of all business transaction.
2. Ledger: A separate record of each similar transaction is called ledger.
3. Trial Balance: A trial balance is a statement of ledger account balances within a ledger at a particular instance.
4. Bank Reconciliation: Bank Reconciliation Statement is a statement prepared mainly to reconcile the difference between the bank balance shown by cash book and pass book.
5. Depreciation : A reduction in the value of an assets with the passage of time due to particular wear and tear.
6. Debit Note : A debit note issued by the purchaser to the seller to inform that we are returning the goods of value …………. Due to damage or whatever and requesting the seller for returning the cost amount of return goods or replace it.
7. Credit Note : The seller issued a credit note to the purchaser that we have received the returned goods by you. And we will replace the goods or will the value amount of return goods.
8. Share : A part of a larger amount that is divided among a number of people or to which a number of people contribute.
9. Intangible Assets :Assets that cannot be physically measured. Eg. Goodwill, patents.
10. Surplus : An amount of something left over requirements have been met, an excess of production or supply over demand.
11. Reserve :
It is credited by debiting the profit and loss appropriation account.
It is created to meet unknown liabilities.
A reserve is created only when there is profit in the business.
It can be distributed among shareholders as dividend.
It is usually shown on the liability side of the balance sheet.
12 Provision :
It is created by debiting the profit and loss account.
It is created to meet a known liability or a specific contingency.
A provision created irrespective of whether there is profit or loss in the business.
It is not available for distribution as dividend among shareholders.
The provision generally shown on the assets side of the balance sheet.
12. TDS : TDS stand for tax deducted at source it is the tax that an assesee to pay at the time of earning an income.
13. Amortization : The reduction of the value of an asset by prorating its cost over a period of years. Amortization is generally known as reduction of intangible assets.
Journal Entry for purchase of intangible assets……….
Intangible Assets A/c ……………………..Dr.
When amortization charges on intangible assets………
Amortization Exp. A/c ……………………Dr.
To Intangible Assets
14. Accrued Expenses : An Expenses that is incurred but not yet paid for during a given accounting period.
Expenses A/c …………………..…………Dr.
To Accrued Expenses A/c
15. Accrued Income : Accrued income is an amount that has been earned there is a right to receive the amount and it has not yet recorded in the general ledger account. It is shown in the assets side of balance sheet.
Debtors A/c ……………………………..Dr.
16. Accounting Equation : The basic accounting equation is the foundation for the double entry system. For each transaction the total debit equal to total credit.
Assets = Liability + Capital
17. Double Entry System : When a transaction effects at least two ledger account in singular transaction called DES.
18. Fixed Assets: A assets that is not consumed or sold during the normal course of business such as land, building, equipment and other such items.
19. Current Assets : Current assets are those assets that will be converted in to cash with in one year, and assets that will be used up in the operation of a business within one year.
20. Fixed Liability : Fixed liability are those liability which has to pay in a long period of time such as long term loan, debenture, capital etc.
21. Current Liability : Current Liability are those liability which has to pay in a very early such as o/s. exp. B/P, B.O. etc.
22. Unearned Income : The income which is related to next year but the amount has received in current year as advance called un earned income. It is shown on the liability side of balance sheet.
Source of income.
23.Outstanding Expenses : Outstanding expenses are those expenses which is related to the current financial year but it has not paid yet or which has not recorded in the ledger account. Outstanding exp. Shown in the dr. Side of P/L A/c by adding from its related and in the balance sheet its shown on liability side.
Expenses A/c …………………………………..Dr.
To Outstanding Exp.
24.Prepaid Expenses : Prepaid expenses are those expenses which has paid as advance in current year and till the preparing of final account it has not used. Prepaid exp. Shown in the cr. Side of P/L A/c deducting from its related and in the balance sheet its shown on assets side.
Prepaid Exp. A/c ………………………………..Dr.
To Exp. A/c.
25. Accounting Principal : The rule or method which is used by an accounting professional to prepare the accurate accounting record or statement is called accounting principal.
Difference Between Secured Loans and Unsecured Loans
Secured Loans vs Unsecured Loans
Secured loans and unsecured loans are two types of loans that bear some differences between them in terms of their rules and regulations, processing and the like.
Secured loans are the loans for which you give some kind of guarantee to the financial institution that lends money regarding the repayment of the loans. Unsecured loan on the other hand is the loan offered to you on the basis of your credit rating that is supposed to be good to be eligible to get the loan.
The type of guarantee that you can give to the financial institution in the case of secured loans may be in the form of assets, car or any other vehicle, documents related to investments made in banks and stocks and the like. On the other hand business people who are not interested in providing their assets as guarantee usually opt for unsecured loan simply by virtue of their existing credit rating.
It is interesting to note that you need not give the assets to the lending institution to get your secured loan sanctioned. The institution believes that it would suffice you own the assets since in case you fail to repay the loan they can initiate action in terms of selling or seizing the assets to compensate the losses. This is the big difference between the two types of loans.
There are some advantages of secured loans in the sense that you get a longer tenure for the repayment of the loans. This is probably the reason why many people would like to opt for secured loans rather than unsecured loans. In the unsecured loans the repayment tenure is usually shorter when compared to the secured loans.
Another advantage of getting secured loans is that they are characterized by lower interest rates. Methods of repayment also are characterized by flexibility in the case of secured loans.
On the other hand unsecured loans are characterized by higher interest rates. This is possibly because of the fact that is normally given by the financial institution without asking for any sort of guarantee.
On the contrary you cannot expect flexibility and options in the methods of repayment of the loans in the case of the unsecured loans. Secured loans are given on the basis of your possession of assets whereas unsecured loans are given on the basis of faith and trust.