Current & Non-current asset

Asset

*an asset is defined as a "resource controlled by an entity as a result of past event and from which future economic benefits are expected to flow to the entity"

*An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.

What is sales tax

Sales tax

* A sales tax  is added to the price of goods and services taken by customer

*A sales tax is a consumption tax  imposed by the government on the sale of goods and services.

* A conventional sales tax is levied at the point of sale, collected by the retailer and passed on to the government.

What is discount allow & discount receive

*Discount Allowed

*There is discount allowed when the seller of goods or services gives a discount to the buyer upon payment. 

*Sellers commonly give price reductions as incentives to encourage early payment on credit sales.

*Sellers also allow discounts for other reasons, such as cash up-front payments, volume orders, promotional offers, clearance sales and as a loyalty reward. 

what is discount

*Discount

*An amount or rate by which the catalog, list, or retail price of an item 

is reduced when sold to a re-seller.

*A discount specifically refers to terms which is used when goods are sold at a less than its nominal or par value.

What is a 'Journal' with practice question 1

*Journal

*. In accounting, a first recording of financial transactions as they occur in time, so that they can then be used for future reconciling and transfer to other official accounting records such as the general ledger.

* A journal will state the date of the transaction, which account(s) were affected and the amounts, usually in a double-entry bookkeeping method.

Concept of Double Entry

Double Entry

*Every transaction has two effects. For example, if someone transacts a purchase of a drink from a local store, he pays cash to the shopkeeper and in return, he gets a bottle of dink.

*Double entry is the fundamental concept underlying present-day bookkeeping and accounting.