Imount
0.10 Prepare the Account of Mr. Jain from the following.
2017 Particulars
Jan 1 Opening balance (Db)
Jan 2
Goods to him on credit
Jan 4 Received cash from him
Jan 15 Sold goods to him for cash
Jan 20 Paid cash to him
8000
7500
2000
2200
OR
Explain each of the following accounting terms -
(i) Capital (ii) Liabilities
(iii) Revenue (iv) Drawing
Answers
Answer:
(i) Capitals refer to anything that a business owner can use to generate more value or an amount of money that you use to start a business or to put in a bank, etc. so that you earn more money (interest) on it.
(ii) Liabilities is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events or A liability is something a person or company owes, usually a sum of money. In other word liabilities denote claims against the assets of the business.
(iii) Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. Revenue, also known as gross sales.
(iv) Drawings is the amount of money that is taken from the business account for personal use. This might be by the owner or partner for personal use, or as dividends if the company has been made public.