Page 163 - Book-keeping for Secondary Schools Student’s Book Form One
P. 163

Glossary

                                            Glossary




            Account         this is a summarised record of a business transaction. it can be presented on
                            a page of a book
            Assets          these are economic resources controlled and used by enterprise to generate
          FOR ONLINE READING ONLY
                            the revenue
            Books of prime  this is also known as books of original entry or subsidiary books used in
            entry           recording the transaction in books of the accounts for the first time. These
                            names can be used interchangeably

            Business        any legal activity undertaken with the aim of making profit
            Capital         financial  resource  or  fund  contributed  by  an  owner  or  other  financing
                            sources to start or expand a business
            Concept         basic general idea regarding something

            Credit          the right-hand side of a ledger account
            Creditor        this is a person who sells goods or services on credit and promises to pay at
                            a later date.  balances due to creditors are called accounts payables (trade
                            payables) or simply “payables”
            Debit           the left-hand side of a ledger account


            Debtors         this is a customer who buys on credit and promises to pay at a later date.
                            Balances due from debtors are called accounts receivable (trade receivables)
                            or simply “receivables”
            Discounts       are reductions from the usual price of something and may be associated
                            with timely payment or buying in large quantity
            Double entry    the system or principle of Book-keeping whereby each business transaction
                            is supposed to be recorded twice

            Drawings        goods or money taken by the owner from a business for personal use
            Entry           an item recorded in a journal or a ledger account.
            Expenses        these are costs of operating business

            Fittings        items that are attached to a property other than a nail or a screw, for example,
                            picture or mirror, plumbing (water system)
            Fixtures        items that are attached or fixed to the property, for example, ceiling fan,
                            ceiling lights, and built-in shelves
            Folio           a page of reference in a book of accounts

            Income          these are receipts or gains of a business


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