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Here is Second Part of Accounting Terms, Hopefully, you will like it. In order to access the previous post, you can visit the below link Accounting Terms - I.Com Part I - B.Com Part I - Part 1 13. Transaction Any dealing between two persons and things is called transaction. For example, Mr. X sells goods to Mr. Y for Rs. 10000, then there is dealing between two parties, so it is called transaction. You can study the article about Business Transactions to enhance your knowledge about this term. 14. Accounts Receivable / Debtors Accounts Receivable or debtors are our customers. We receive the payments from our customers at some future date for the goods sold to them. For Example, On 1st June, 2015, we sold goods to our customer, Mr. Y for Rs.60,000 on credit, then, Mr. Y becomes our debtor and we receive Rs.60,000 from him / her after one month (let say) i.e., 30th June, 2015. 15. Accounts Payable / Creditors Accounts Payable or Cred...

Here we discuss different Accounting Terms in two parts. 1.    Business Business means any legal activity undertaken for the sake of the legal profit. Accounting is the language of Business. There are three forms of business (i)    Sole Proprietorship (only one Owner) (ii)    Partnership (two or more partners) (iii) Company (2-50 for private and 7 to infinity for public company) 2.    Goods or Merchandise In Accounting only those things or items are considered to be goods that are manufactured or purchased for resale purposes. For Example, Furniture like Office Chairs purchased for sale purposes are considered as purchases or goods. But, if the Office Chairs purchased for using in the business so that it provides probable future benefits, then it is to be considered as Asset in the books of accounts and not goods. 3.    Purchases        ...