What is Drawing in Accounting? A drawing is an acounting record maintained to track money withdrawn from a business by its owners. For Example: An Owner withdraw the money from business for their house rent. For What is Capital in Accounting? Click here or for What is an Income? Click here.
What is Capital in Accounting? No business can run without money or resources being invested therein. Whatever money or resources from ones’ own pocket are put in a business is referred to as CAPITAL. Capital is the investment of the Owner in the business. This capital or investment must earn a return or profit on …
What is Income in Accounting? Income is the value of goods or services that a business charges from its customers. or Excess of revenue over expenses. Businesses can be distributed in two major categories. One that provides goods and the other that provides services. If the organization is commercial then these goods or services will …
What is Expense in Accounting? Expenses are the costs incurred to earn revenue. or A cost relating to the operations of an accounting period. For Example: Office rent, Employes Salaries, Machinery repair etc. For What are Liabilities in Accounting? Click Here or for What is Income? Click here
What are Liabilities? Liabilities are the debts and obligations of the business. Liability is the obligation of the business to provide a benefit or asset on a future date. We have discussed credit transactions. Whenever a person purchases something on credit he promises to pay for the goods on a future date. This is his …