Question

Briefly explain the following basic accounting terms:
1.sales
2. expenditure
3. gain
4. profit
5. drawing
6. debtors​

Answer 1

Answer:

1.Sales

When purchase goods are sold in order to earn a profit are called sales. When goods are sold for cash it is called cash sales and goods sold on credit are called credit sales.

2.Expenditure

The amount which is paid for increasing profit earning capacity of business is called expenditure. It is of long period nature.

3.Gain

It is a monetary receipt as a result of business transaction. The excess of revenue over the expenses is called gain.

4.Drawings

The amount of cash or goods which is withdrawn by proprietor from business for its private uses is called drawings. It reduces the capital of the business.

5. Debtors

The person, firm or an organization who takes goods or services on credit from the business are called debtors of the business. In other words, the person, firm or an organization who owes money or Money’s worth to the business is called debtor.

Answer 2

Explanation:

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