Chapter 2 Basic Accounting Terms (Continued, Part 3)
Basic Accounting Terms Learning Objectives *Introduction *Important Accounting Terms # Receipts # Deferred Revenue Expenditure # Revenue # Bills Receivables # Bills Payable # Cost # Entry # Debit and Credit # Proprietor # Bad Debts # Insolvent # Solvent # Book Value # Invoice # Entity Introduction Please Note 1. Receipts; Receipts refer to the amount received or receivable by the business organisation from selling assets, goods or services. Receipts are of two kinds: i. Revenue Receipts : Revenue receipt refers to the amount received or receivable in the normal course of business. Example, amount received from sale of goods or services. The revenue receipts are of recurring in nature. ii.Capital Receipts: Capital Receipts refers to the amount received or receivable under transactions which are not revenue in nature. For example, ...