Unit-3 Basic Accounting Terms and Concepts
This unit explains some of the terms which are commonly used in accounting and also the basic concepts underlying the accounting system.
Mr. Ghansyamlal carries on ready made garments business. A few transactions are given below. Identify the transactions to be recorded in the books of his business.
a)Purchased a typewriter for Rs. 6,000 for office use.
b)Paid salary to the office typist at Rs. 350 per month.
c)Bought a show case for Rs. 2,000.
d)Sold old domestic furniture for Rs. 500.
e)Purchased cloth for garments for Rs. 10,000.
f)A shirt worth Rs. 250 is taken home for his son.
g)Entered into an agreement to rent a shop in Sadar Bazar.
h)Paid Salaries to his salesmen, Rs. 1,000.
i)Paid Salary to his domestic servant, Rs. 100.
j)Appointed Satish as an assistant in the shop.
k)Borrowed Rs. 5,000 from Mr. Dyanchand for business purpose.
l)Mr Rakesh, one of the salesmen, met with an accident.