What is sale?
When goods are sold to customer at specific price called sale, also called good outward book.
What is sale return/return inward?
When goods are returned by customer to seller recorded in sales return book, also called return inward. And in which book recorded called sales return or return inward book
Note
So here conclude the sale and sales return both are opposite to each other
What are purchases?
When saleable goods are brought in a business are called purchases, also called inward book
What is purchases return/return outward?
When saleable goods brought are return to supplier is called purchases return. And in which book recorded called return outward book
What is account?
A summarized record of business transactions relating to a person or a thing
What are assets?
Economic resources of business are called assets of business. (Account receivable and debtors)
Define liabilities?
Any kind of debts of business is liabilities (Account Payable, creditors)
What is account equation?
Assets = Liabilities + owner’s equity
Define debtors?
When goods are sold on credit supplier has received cash from purchaser called account receivable or debtors.
Define creditors?
When goods are purchased on credit purchaser has to pay cash to supplier called account is called creditors or account payable.
