28 June

Purchases

Purchases are the total amount of goods procured by a business on credit and on cash, for use or sale. In a trading concern, purchases are made of merchandise for resale with or without processing. In a manufacturing concern, raw …

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28 June

Goods

It refers to the products in which the business unit is dealing, i.e. in terms of which it is buying and selling or producing and selling. The items that are purchased for use in the business are not called goods. …

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28 June

Voucher

The documentary evidence in support of a transaction is known as a voucher. For example, if we buy goods for cash, we get a cash memo, if we buy on credit, we get an invoice; when we make a payment …

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28 June

Cash Discount

After selling the goods on a credit basis the debtors may be given certain deduction in amount due in case if they pay the amount within the stipulated period or earlier. This deduction is given at the time of payment …

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28 June

Trade Discount

Offering deduction of the agreed percentage of list price at the time selling goods is one way of giving a discount. Such a discount is called ‘trade discount’. It is generally offered by manufacturers to wholesalers and wholesalers to retailers. …

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28 June

Loss

The excess of expenses of a period over its related revenues its termed as loss. It decreases in owner’s equity. It also refers to money or money’s worth lost (or cost incurred) without receiving any benefit in return, e.g., cash …

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