Accounting Terminologies.

Assets

Assets are the property of the business. it is anything (tangible or intangible) that can be used to produce positive economic value. Assets may be owned by the business or purchased by the business not for resale purpose but to take future benefit from them. Examples Land and Building, Plant and Machinery, Furniture and Fixture, cash, Bank balance, Inventory,  Prepaid Expenses, Vehicle, Computer, Goodwill, Trademark Etc.

Liabilities

Liabilities are the amount payable by the business. liabilities  is simply a debt or obligations of the business, they represent as creditor's claim on business Assets. Example Creditor, outstanding expenses, Unearned expenses Etc. 

Capital

Capital is the initial investment  by the owner in the business. It is also called net worth/ owner's Equity of the business

Drawings

Amount of Cash or Goods withdrawn by the owner/ proprietor for his personal use from the business is known as drawings. 

Goods

In Accounting Goods means "the things or items " which are bought and sold by business. 

Example: Cell Phone, Computer, books, automobile, clothing etc.

Purchase

Buy some goods is called purchase. Total amount of goods procured by a business on credit or on cash , for use or sale.

Sale

Transactions between two or more parties in which goods or services are exchanged for money, sales are the total revenue from goods and services sold. It may be cash sale or credit sale.

Debtor

A debtor is a person or entity that owes money to another , which can be any individual or institution. Debtor generally takes place when there is credit sale by the business.

Creditor

A creditor is a person or entity to whom money is due. A creditor could be a bank, supplier or person that has provided money, goods or services to a company and expects to be paid at a later date.