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Common accounting terms

 Book keeping 
                                                                          Book keeping is a art where the part of accounting the process of recording financial transactions in a systematic manner and classifying them into ledger accounts termed as book keeping.

Process of financial transaction

• Identifying financial transactions and events .
• Measuring them in terms of money.
• Recording the indentifyed transactions in           books of accounts.
• classifying posting them into the ledger              accounts.
• Analysing and interpretation
• Communicating to the users.
Accounting is the art or is the primary consult recording, classifying, summering in a significant manner and in terms of money, transactions and events which are in part at least of financial character and interpret the results thereof.
Business transaction

The term business transaction means a financial transactions or event entered by the two parties and it will recorded in books of accounts.
Liability

Liability means such as amount which payable to the business or entity is known as the liability. Amount payable to the outsiders called external liability and amount payable to the Owners of the business called internal liability.

Assets 

An asset is a property or a legal rights owed by a business to which money value is included.
Assets are which will unable the firm to get the cash or other types of profitable advantage in future is an assets. 

Journal

All the business transaction are recorded in books  of account which is known as journal.
A journal is the primary books of accounts in which transaction are first recorded in chronological order as they entered into transaction. 
There are various types of journal where every particular business transaction recorded. Let say for example purchas of item goes to purchase journal, sales journal goes to sales journal etc. 

Ledger

A ledger may be defined as a book or a register which contains in a summerissed and classified form and a permanent record of all transactions. It is source where we get data for making trial balance. With the help of trial balance we able make financial statements of business organizations. 

Trial balance

The trial balance is the statement prepare with help of ledger accounts. It contains a Dr. And Cr. Columns. We generally use trial balance to know the airthmatical accuracy of the business operations or business transaction. All the heads are taken from the ledger accounts. It also provides information for building financial statements. It also provides summary of each accounts. If the trial balance doesn't match that means it occuring a airthmatical incorrection. 





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