Accounting Terms Account - Accounting Terms

Goods taken by the proprietor for personal use is:

Sale is recognised as revenue:

Bank overdraft is:

A liability arises because of:

A person to whom money is owed by a firm for purchase of goods is called a:

Explain Capital briefly.

Briefly explain the term 'Goods'.

What are the main classes of Liabilities?

Give any two examples of Current Assets.

What is meant by Credit Transaction?

Explain the meaning of the following term:
Stock.

Explain the following term:
Fictitious Assets.

Explain the meaning of the following term:
Capital.

Explain the meaning of the following term:
Business Transaction.

Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an initial investment. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹ 1,50,000 on credit to Mr. Rajesh.
Subsequently, he bought men's garments of ₹ 2,00,000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:

1. What is the amount of capital with which Mr. Gopal started the business?
2. What fixed assets did he buy?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. Who is the debtor and what is the amount receivable from him?
6. What is the total amount of expenses?
7. What is the amount of drawings of Mr. Gopal?

Write a note on types of assets with one example of each.