Basic Accounting TermsYear: Calendar year and Financial yearDepreciation: Reasons of depreciation ➢ (i) Use of assets (ii) passage of timeVoucherGoods and Its TypesStock/Inventory and Its Types: Opening Stock and Closing StockManufacturer, Trader and InsolventProprietorDebtor and CreditorBills Payable and Bills ReceivableDrawing, Entry and AccountAccountancy and Accounting Cost and Its Element: Material, Labour and OverheadsLiability and ProvisionReserve and Bad DebtsDoubtful Debts and Bad Debts RecoverTransactionCapitalDebitCreditRevenueExpenses and IncomeProfit, Gain and LossPurchase and Purchase Return / Return OutwardsSale and Sale Return / Return InwardDiscount and Its Kind : Trade Discount and Cash DiscountTypes of Capital & Revenue nature items: Capital nature items, Revenue nature itemsClassification of Expenditure: Capital Expenditure, Revenue ExpenditureCapital Expenditure :- Contents # ➢Relation with fixed asset ➢Not for sale ➢Long term benefit ➢Increase the value of assets ➢Increase the profit earing capacity of the business ➢Rare expenditure ➢Shown in the asset side of the balance sheetExample of Capital ExpenditureRevenue Expenditure: Contents # ➢ Relation with production to sale of goods ➢ Short term benefit ➢ Routine expenses ➢ To maintain the assets but they do not increase the value of an asset. ➢ Do not increase the profit earning capacity of the concern but simply maintain it. ➢ Shown on the debit side of the trading and P/L Account. Example of Revenue ExpenditureClassification of Income/ReceiptCapital Receipt and Its Example Revenue Receipt and Its exampleDiffered Revenue expenditureClassification of LiabilitiesAssets and Its ClassificationGoodwillCopyright PatentTrademarkCommerceWhole sale tradePrimary industrySecondary industryFather of accounting In India