LESSON PLAN 40 (ICT)

WELCOME

UNIT:INTRODUCTION OF ACCOUNTING

TOPIC:BASIC TERMS IN ACCOUNTING

TRANSACTION ASSETS LIABILITIES CAPITAL EXPENSES POFIT LOSS DRAWINGS PURCHASES SALES DEBTORS CREDITORS

BASIC TERMS IN ACCOUNTING

TRANSACTIONTransactions involving immediate receipt or

payment of money are called cash transaction

ASSETSCash or any valuables owned by the

business can be called an asset.

LIABILITIESLiabilities are the obligation of the

business. It the amount which a business owes to others

CAPITALAmount invested by the owner in the firm is known as capital

EXPENSESCosts incurred by a business in the

process of earning revenue are known as expenses

PROFITThe excess of revenues of a period over its related

expenses during an accounting year is profit . Profit increases the investment of the owners.

LOSSThe excess of expense of own revenue in an

accounting year. It decreases in owners equity.

DRAWINGSDrawings is the amount of cash or other

assets withdrawn by the owner for his personal purpose.

PURCHASESPurchases is an expense incurred for

procured of goods in a business.

SALESSales are total revenues from goods

or services sold or provided to customers. Sales may be cash sales

or credit sales.

DEBTORSDebtors are persons who money to the

business.

CREDITORSCreditors are persons to whom

business owes money.

Giving examples,explain each of the following accounting terms:

ASSETS CAPITAL EXPENSES LIABILITIES

THANK YOU