An Approach to Principles of Accounting (I.

Com Part-I) Education, with Excellence

CH #1. Introduction
1) Accounting
Accounting is the language of business, through which we record classify summarize and interpret the
financial information.
OR
A process of recording, classifying, summarizing and interpreting the business transaction.
‫اھکوتںیکایتریاورامیلوگوشاروںیکایتریےکلمعوکااکوگنٹنےتہکںیہ۔‬،‫اکروبارینیلدنیےکادنراج‬
2) Book Keeping/Recording:
The art of recording monetary transaction in books of accounts in a proper manner.
OR
“Book” means “books of accounts” and “Keeping” means “maintaining these accounts in a proper
way”.
‫اکروبارینیلدنیوکاکرباریبتکںیمانمسرطےقیےسدرجرکےنےکنفوکاسحبداری(بگنپیک)ےتہکںیہ۔‬
3) Business:
Any legal & regular activity done for the sake of earning profit.
‫وکیئیھباجئزاقونینرسرگیموجعفنامکےنیکرغضےسیکاجےئاکروبار(ئزسن)الہکیتےہ۔‬
4) Goods/Merchandises
Things in which business deals.
Example: Clothes for clothe dealer, Watches for watch dealer or manufacturer.
‫ایسیزیچںینجاکاکروبارایکاجےئاایشء(ڈگز)الہکیتںیہ۔‬
5) Purchases:
The act of buying saleable goods in the business.
Example: Furniture purchased by furniture dealer.
‫الہکبےہ۔‬
‫زی(رپزیچز) ا‬
‫اایشءوکفزوختترکےنیکرغضےسخزیدبااکروباریخ د‬
6) Cash Purchases & Credit Purchases/Purchases on Account:
Purchases of goods for cash.
Example: Goods purchased from Mr. A for cash Rs.5000.
‫ارگاایشءوکشیکرپخزیدااجےئوتاےسدقنخزید(شیکرپزیچز)ےتہکںیہ۔‬
Purchases of goods on account or credit.
Example: Goods purchased from Mr. A on account Rs.5000.
‫ارگاایشءوکاداھررپخزیدااجےئوتاےساداھرخزید(رکیدٹرپزیچز)ےتہکںیہ۔‬
7) Sales/Turn Over:
The act of selling saleable goods in business.
OR
Selling of goods by business to any person for a price.
Example: A book seller sales books.
‫اایشءوکاباخصتمیقرپفزوخترکبااکروباریفزوخ(زلیس)الہکباےہ۔‬
8) Cash Sales & Credit Sales/Sale on Account:
When goods are sold for cash.
Example: Goods sold to Mr. A for cash Rs.5000.
‫ارگاایشءوکشیکرپفزوخایکاجےئوتاےسدقنفزوخ(شیکزلیس)ےتہکںیہ۔‬
When goods are sold on account or credit.
Example: Goods sold to Mr. A on account Rs.5000.
‫ارگاایشءوکاداھررپفزوخایکاجےئوتاےساداھرفزوخ(ترکیدٹزلیس)ےتہکںیہ۔‬

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9) Purchases Return/Return Outward/Return to Supplier:
Return of purchased goods to the supplier.
Example: Goods return to Mr. A for Rs.4000.
‫خزیدیوہیئاایشءاکفزوخدننکہوکواسپرکباوایسپخزید(رپزیچررٹین)الہکباےہ۔‬
10) Sales Return/Return Inward/Return by Customer
Return of sold goods by customers to the business.
Example: Goods returned by Mr. A for Rs.1000.
‫فزوخدشہاایشءاکاگکہیکرطفےساکروبارںیمواسپآبافزوخوایسپ(زلیسررٹین)الہکباےہ۔‬
11) Debtor/Accounts Receivable:
A person who owes money is a debtor.
Example: Ali owes Bilal, here Bilal is debtor.
‫وہصخشوجاداھےسیپاتیلےہرقموض(ڈرٹی)الہکباےہ۔‬
12) Creditor/Accounts Payable:
A person to whom money is owing is a creditor.
Example: Ali owes Bilal, here Ali is creditor.
‫سجصخشوکایکسرمقواسپدینیوہفزضوخاہ(رکیدرٹی)الہکباےہ۔‬
13) Types of Discount:
 Cash Discount ‫دقنوٹکیٹتت‬
 Trade Discount ‫اجتریتوٹکیٹ‬
14) Cash Discount:
Discount on the early payment of cash.
‫شیکیکدلجادایگیئرکےنرپوجراعتیئیتلمےہاےسدقنوٹکیٹ(شیکڈاکسون)ےتہکںیہ۔‬
15) Trade Discount:
At the time of sale deduction in list price of goods.
‫فزوخےکوقاایشءیکٹسلںیمدرجدشہتمیقںیمیمکوکاجتریتوٹکیٹ(رٹیدڈاکسون)ےتہکںیہ۔‬
16) Assets
Economic resources, properties and possessions are owned by business.
OR
Properties or things owned by the business.
Example: Land, Building, Machinery & Good Will.
‫ایسیزیچںیبااجدیئادوجاکروباریکتیکلموہںاباہثاجت(اسی)الہکیتںیہ۔‬
17) Liabilities:
Liabilities are the debts or obligations of a business.
Example: Long-term Loan, Bank Overdraft & Creditors.
‫یب‬
‫اکروبارےکفزےضبافزےضیاکروباریکذہمدارباں(ال یلبییزز)الہکیتںیہ۔‬
18) Capital/Owner’s Fund/Owner’s Equity/Internal Liabilities/Internal Equity:
The amount which is invested in business.
‫ایسیرمقوجاکروبارںیماگلیئاجیتےہرسامہی(لٹپیک)الہکیتےہ۔‬
19) Drawings
Cash or goods withdraw by the owner for personal or domestic use.
‫وہرمقبااایشءوجاکروباراکامکلاکروبارںیمےسذایتاامعتسلےکےیلاکنلاتیلےہئزداشیگی(ڈریز)الہکیتںیہ۔‬
20) Expenses:
Cost that is allocated to the current period.
OR
Expenses are the cost of goods and services used up in the business to earn profit.
OR

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An expenditure whose benefit has been finished.
Example: Rent Paid, Salaries Paid & Bank Charges.
‫یکس‬
‫اےسیخزےچنجاکئاہدہ متوہ اکوہاکروباریخزےچ(ا یبسزز)الہکےتںیہ۔‬
21) Revenue/Income:
Amount earned by selling of goods or services to customer.
‫ایسیرمقوجاکروبارامکباےہفلتخمذراعئےسآدمین(امکن)الہکیتےہ۔‬
22) Accounting Period:
A span of time for which a business prepares its financial statements.
‫وہرعہصسجےکےیلامیلوگوشارےایترےئکاجںیئااکوگنٹنریپیدالہکباےہ۔‬
23) Stock/Inventory:
Goods in hands or unsold.
‫وجاایشء مہارےباسوہںبافزوخہنوہیئوہںذریخہ(ااٹسک)الہکیتںیہ۔‬
24) Proprietor/Owner:
A person who own the business.
OR
A person who is responsible for the profit and loss of business.
‫وہصخشوجاکروبارےکعفنواصقننےکےیلذہمداروہباےہاکروباراکامکل(آرن)الہکباےہ۔‬
25) Manufacturing:
A business in which goods are manufactured.
Example: Textile Mills & Sugar Mills.
‫الہکبےہ۔‬
‫ااسیاکروبارسجںیماایشءایتریکاجیتںیہاعا یاکروبار(فونینرچکیگئزسن) ا‬

CH #2. Transaction and Accounting Equation

26) Transaction:
Any dealing between two or more person.
OR
A business event which can be measured in the term of money.
OR
Any activity which effects the financial position of business.
OR
An exchange of goods or services between two or more persons.
‫دوبادوےسزبادہافزادےکدرایمناایشءاورخدامتےکابتدےلوکنیلدنی(رٹائزنشک)ےتہکںیہ۔‬
27) Cash Transaction:
If cash is paid or received in any business dealing.
‫ارگیسکاکروبارینیلدنیںیمرمقیکادایگیئباووصیلوفراًوہاجےئوتاےسدقننیلدنی(شیکرٹائزنشک)ےتہکںیہ۔‬
28) Credit Transaction:
If cash is to be paid or received in future in any business dealing.
‫رٹائنشک)ےتہکںیہ۔‬
‫تارگیسکاکروبارینیلدنیںیمرمقیکادایگیئ ابووصیل لبقتسںیموہینوہوتاےساداھرنیلدنی(رکیدٹ ز‬
29) Accounting Equation
A method by which financial position of a business can be checked.
OR
Assets = Claims against assets.
OR
Assets = Liabilities + Owner’s Equity
‫ااسیرطہقیسجےساکروباریکامیلاحلرپیھکاجیتےہ۔‬

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30) Equity:
Equity is the claim against the assets of the business.
OR
Equity = Liabilities + Owner’s Equity.
‫اباہثاجتیکفزوخےلیکوجرمقامیگناجیتےہاےساوکییٹیےتہکںیہ۔‬

CH #3. Analysis of Business Transaction &

Double Entry System
31) Double Entry System
A system in which both aspects/effects of a business transaction are recorded.
‫م‬
‫ےہدوہزےادنراجاکاظنم(ڈبایزیمٹسس)الہکباےہ۔‬ ‫اجب‬
‫ااسیاظنمسجںیماکروبارینیلدنیےکدوونںولہپوںاکادنراجایک ا‬
32) Single Entry System:
A system in which normally both aspects/effects of a business transaction are not recorded.
OR
A system other than double entry system.
‫تااسیاظنمسجںیماعموطررپاکروبارینیلدنیےکدوونںولہپوںاکادنراجںیہنایکاجباےہبرط ہادنراجاکاظنم( لگنایزیمٹسس)الہکباےہ۔‬
33) Account:
Individual record of an item in a summarized manner.
Example: Cash Account, Machinery Account & Ali Account.
‫یسکتصخشبازیچاکرصتخماسحباتکبرےنھکوکاھکہت(ااکون)ےتہکںیہ۔‬
34) Nominal Accounts:
Accounts which are concerned with income, expenses and loses.
Example: Rent Account, Interest Account & Loss by Accident Account.
‫اصقننبارھپانمعفےسوہریمساھکہتاجتت(ونلنیمااکوسٹن)الہکےتںیہ۔‬،‫خےچےس‬
‫اےسیاھکہتاجتنجاکقلعت ز‬
35) Real or Property Accounts:
Accounts which are concerned with properties or things which are owned by business.
Example: Machinery Account, Building Account.
‫اےسیاھکہتاجتنجاکقلعتاایشءاوراجدیئادیکتیکلمےسوہیقیقحاھکہتاجت(ریااکوسٹن)الہکےتںیہ۔‬
36) Personal Accounts:
Accounts which are concerned with persons, firms or companies.
Example: Ikram Account, Habib Bank Account.
‫فزمباوینپمکںےکاسھتوہیصخشاھکہتاجت(رپلنسااکوسٹن)الہکےتںیہ۔‬،‫اےسیاھکہتاجتنجاکقلعتیسکافزاد‬
37) Rules of Dr/Cr (British/Classical Approach):
 Nominal Account
Debit all expenses and losses, credit all income and gains.
 Real/Property Account
Debit what comes in, credit what goes out.
 Personal Account
Debit the receiver, credit the giver.
38) Rules of Dr/Cr (American/Modern Approach)
 Asset & Expenses Account
Debit when increases, credit when decrease.
 Revenue/Income, Liabilities
Credit when increases, debit when decrease.

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CH #4. Journal: The Original Book of Entry

39) Journal/Book of Original Entry:
The book in which transactions are firstly recorded chronologically.
OR
A book of original early to record different business transaction.
‫ایسیاتکبسجںیماکروبارےکامتمنیلدنیوکسےسےلہپتبارخیاورئزبیتواردرجایکاجباےہروزباہچم(خزلن)ےتہکںیہ۔‬
40) Journalizing:
The process of recording of a transactions in Journal.
‫نیلدنیوکروزباہچمںیمدرجرکےنےکلمعوکخزالنئزگےتہکںیہ۔‬
41) Day Book:
Because transaction are recorded in journal on the same day so it’s also called day book.
‫ویکہکنروزباہچمںیم مہزنیلدنیوکایسدندرجایکاجباےہسجدننیلدنیوہاسےیلاےسڈےبیھباہکاجباےہ۔‬
42) Advantages of Journal:
 It provides all necessary information about a transaction.
 It helps to locate and remove errors.
‫ہینیلدنیےکبارےںیمامتمرضوریولعمامتفزا مرکباےہ۔‬
‫ہیویطلغںوکالتشرکےناوردوررکےنںیمدمدرکباےہ۔‬
43) Entry:
To enter or record individual business transaction in Journal.
‫یسکابتنیلدنیوکروزباہچمںیمدرجرکےنوکارٹنییےتہکںیہ۔‬
44) Simple Entry:
An entry in which one account debited and another account is credited.
‫اسدہ(لپمس)ارٹنییالہکیتےہ۔‬،‫ایسیارٹنییسجںیمابااکونتتڈیاوررکیدٹوہ‬
45) Compound Entry:
An entry in which one or more debited and one more account credited.
‫ولخمط(اپمکوید)ارٹنییالہکیتےہ۔‬،‫ایسیارٹنییسجںیمابےسزبادہااکوسٹنڈیبارکیدٹوہ‬
46) Narration:
A short detail of each transaction is written under each entry.
‫مز‬
‫ہارٹنییےکبارےںیمرصتخملیصفتوکریننشیےتہکںیہ۔‬
47) Voucher
A written evidence of a business transaction.
‫اکروبارینیلدنیےکرحتئزیوبثتوکوورچےتہکںیہ۔‬
48) Invoice
A documents given by seller to buyer for credit sale.
‫ایسیداتسوئزوجفزوخاکرخزیداروکاایشءےکاداھرفزوخرپاجریرکباےہاوناسئالہکیتےہ۔‬
49) Ledger Folio Ledger Reference:
A column in which page no of the ledger is mentioned for locating entry in ledger.
‫ااسیاکملسجںیمرجیلاکہحفصربمناھکلوہباوجرجیلںیمارٹنیالتشرکےنںیمدمدرکباےہ۔‬

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50) Sketch/Format of General Journal:
Name of Business/Owner
Journal
For the month ended
Date Particulars L/F Amount Rs. Amount Rs.
Account to be debited XXXXX
Account to be credited XXXXX
(Narration)

CH #5. Ledger: The Main Book of Accounts

51) Ledger:
A book in which all transaction related to a person or things are recorded.
‫ایسیاتکبسجںیمیسکابصخش ابزیچکلسنمامتمنیلدنیوکدرجایکاجباےہاےسرجیلےتہکںیہ۔‬
52) King of Books:
It is mandatory to post all entries into the ledger from journal.
‫رکبالزیموہ ابےہ۔‬
‫اجبےہویکہکنامتمارٹنیویںوکروزباہچمےسرجیلںیملقتنم ا‬
‫رجیلوکامتماکروباریبتکاکبادشاہاسےیلاہک ا‬
53) Posting:
The process in which entries are posting from journal to ledger.
‫اکوربارینیلدنیوکتروزباہچمےسرجیلںیملقتنمرکےنےکلمعوکسوپ گنٹےتہکںیہ۔‬
54) Balance:
The difference between the two sides of an account.
‫رجیلیکدوونںارطافینعیڈیاوررکیدٹےکفزووکہک سنےتہکںیہ۔‬
55) Debit Balance
If the debit side of an account is heavier, its balance is known as Debit Balance.
‫ارگرجیلیکدوونںارطافںیمےسدیتتئزیوہوتاےسیہک سنوکڈیہک سنےتہکںیہ۔‬
56) Credit Balance
If the credit side of an account is heavier, its balance is known as Credit Balance.
‫ارگرجیلیکدوونںارطافںیمےسرکیدٹئزیوہوتاےسیہک سنوکرکیدٹہک سنےتہکںیہ۔‬
57) Zero Balance:
If both sides of an account are equal, there is Zero Balance.
‫ارگرجیلیکدوونںارطافئزائزوہںوتاےسیہک سنوکترفص(زئزہ)ہک سنتےتہکںیہ۔‬
58) Trial Balance:
A statement in which debit and credit balances of all accounts are posted to check arithmetic accuracy.
OR
A statement that list the ledger account balances and compare the total of debit side with the total of
the credit side.
‫ب‬
‫رجیلیکاسحیبدریگتسوکچرکےنےلیکرجیلےک یلبسززیکابرہفسایتریکاجیتےہےسجرٹالیہک سنےتہکںیہ۔‬
59) Methods of preparation of Trial Balance:
 Total Method
 Balance Method
60) Journal Folio Journal Reference:
A column in which page no of the journal is mentioned for locating entry in journal.
‫ااسیاکملسجںیمروزباہچماکہحفصربمناھکلوہباوجروزباہچمںیمارٹنیالتشرکےنںیمدمدرکباےہ۔‬

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61) Journal V/S Ledger
Journal Ledger
It is first book of account. It is second book of account.
‫ہیارٹنیییکتک یاتکبےہ۔‬ ‫ہیارٹنیییکدورسیاتکبےہ۔‬
Recording in journal is called journalizing. Recording in ledger is called posting.
‫نیلدنیوکروزباہچمںیمدرجرکےنکوکخزالنئزگےتہکںیہ۔‬ ‫نیلدنیوکرجیلںیمدرجرکےنوکسوپ گنٹےتہکںیہ۔‬
Unit of data in journal is called entry. Unit of data in ledger is called account.
‫خزلنںیمداٹییکااکیئارٹنییالہکیتےہ۔‬ ‫رجیلںیمداٹییکااکیئااکونالہکیتےہ۔‬

CH #6. Accounting for Bills of Exchange

62) Bills of Exchange:
An unconditional written order by one person to another person signed by drawer and drawee to pay
the certain amount after a specified time to a specified person or bearer.
‫وبقلرکےنواالاسرپدطختسرکباےہاوراباخصرمقاباخصبارخیرپاےس اباباخصصخشوکبااحلموکادارکےناک‬،‫ڈنہیابریغرشموطرحتئزیتحکتمتیااہمےہوجابصخشدورسےرپانبباےہت‬
‫بادنبوہاگ۔‬
63) Parties of Bills of Exchange:
 Drawer (Creditor) ‫رمندننکہ‬
 Drawee (Debtor) ‫رمناہیل‬
 Payee (Receiver) ‫ووصلدننکہ‬
64) Drawer:
A person who draws the bill.
‫ااسیصخشوجڈنہیاتھکلےہرمندننکہ(ڈرار)الہکباےہ۔‬
65) Drawee
A person on whom bill is drawn.
‫ااسیصخشسجرپڈنہییھکلاجیتےہرمناہیل(ڈرایئ)الہکباےہ۔‬
66) Payee
A person who receives the amount of bill.
‫ااسیصخشوجرقمرہدمتےکدعبڈنہییکرمقووصلرکباےہووصلدننکہ(پت)الہکباےہ۔‬
67) Trade Bill:
A bill which is drawn against credit sale.
OR
Bill drawn and accepted against the sale and purchase of goods on credit.
‫ایسیڈنہیوجاداھریکخزیدوفزوخےکدبےلیھکلاجیتےہاےساجتریتڈنہی(رٹیدب)ےتہکںیہ۔‬
68) Accommodation Bill
Bill drawn for the mutual financial help of drawer and drawee.
‫ایسیڈنہیوجرمندننکہاوررمناہیلابدورسےیکبایمہدمدرکےنیکرغضےسںیھکلاےسااع یتنڈنہی(ااکومڈنشیبت)ےتہکںیہ۔‬
69) Inland Bill:
A bill in which both parties of bill are in the same country.
‫ایسیڈنہیسجںیمرمندننکہاوررمناہیلاب ی کلںیموموجدوہںاےس یکلڈنہی(ایلبیبدب)ےتہکںیہ۔‬
70) Foreign Bill
A bill in which both parties of bill are not in the same country.
‫تایسیڈنہیسجںیمرمندننکہاوررمناہیلاب ی کلںیموموجدہنوہںاےسریغ یکلڈنہی(ئارنب)ےتہکںیہ۔‬

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71) Sight/On Demand Bill:
A bill which is payable when it is present for payment.
‫ایسیڈنہیوجرمندننکہےکبلطرکےنرپادارکدیاجےئاےسآنڈامییدبےتہکںیہ۔‬
72) Bill Receivable:
A bill of exchange from view point of drawer/holder of bill.
‫ابڈنہیوکرمندننکہےکاحلظےساقب ِووصلڈنہی(بترویسای)ےتہکںیہ۔‬
73) Bill Payable:
A bill of exchange from view point of drawee.
‫ابڈنہیوکرمناہیلےکاحلظےساقب ِاداڈنہی(بےپایت)ےتہکںیہ۔‬
74) Tenor/Validity Date:
Period of time after which a bill becomes payable.
Example: After 2 Months or 3 Months
‫ااسیوہفقےہسجےکدعبڈنہییکرمقادارکباوہیتےہ۔‬
75) Maturity
Due date of the bill at which the amount is paid or received.
‫ایسیبارخیسجرپڈنہییکرمقاداباووصلرکیلاجیتےہاےسوچیمریٹآفبےتہکںیہ۔‬
76) Days of Grace
Three extra days which are given to the drawee for payment of bill.
‫یدےیاجےتںیہاناعایفنیتدونںوکراعیتئدن(ڈئزآفرگسی)ےتہکںیہ۔‬
‫بیکادایتےکرقمرہوقےکالعوہنیتدنمز د‬
77) Holder of Bill
A person who is entitled to hold the bill in his own name and to claim the amount due.
‫رھکوہ۔‬
‫ااسیصخشوجاےنپبامےسڈنہییکتیکلماکقحرھکاوہاوراسرپاقبادایگیرمقاکدوعی ا‬
78) Discounting of Bill:
When the holder of bill discounted the bill with his banker to fulfill his need against discount charges.
‫ارگڈنہیرےنھکواالصخشڈنہیوکرقمرہدمتےسےلہپمکتمیقرپکنبوکفزوخرکدےوتاےسڈنہیرپہٹھباگلبا(ڈاکسوگنٹنآفب)ےتہکںیہ۔‬
79) Endorsement of Bill:
When a bill is transferred by drawer to his creditor or third person.
‫خرمندننکہبیسکفزضوخاہبارسیتےصخشوکلقتنمرکداتیےہوتاسلمعوکڈنہییکیلقتنم(اڈنیورسمبنٹآفب)ےتہکںیہ۔‬
80) Dishonor of Bill:
When acceptor fails to make the payment due to any reason on due date.
‫خرمناہیلرقمرہدمتےکدعبرمقادارکےنےسااکنررکدےوتاےسڈنہیاکرتسمدوہبا(ڈسآرنآفبت)ےتہکںیہ۔‬
81) Noting Charges
Charges which are paid to the notary public on dishonor of a bill by holder.
‫ڈنہیےکرتسمدوہےنیکوہجےسوجرمقاوکسونٹرکواےنیکوہجےسونرٹیک کلوکدیاجیتےہاےسونگنٹاچرخزےتہکںیہ۔‬
82) Renewal of a Bill:
When a bill is dishonored on the request of drawee a new bill is drawn along with the amount of
interest.
‫خڈنہیرتسمدوہاجےئاوررمناہیلرمندننکہےسدروخاسرکےہکوہاےساباینبھچکمزیدوقاسیکھتانبدےاوراسمزیدوقیکوہجےسوسدیھبووصلرکےلوتاسلمع‬
‫وکریوینلآفبےتہکںیہ۔‬
83) Retiring of a Bill:
Pay the amount of bill before due date under rebate.
‫خرمناہیلترقمرہدمتےسےلہپبیکرمقادارکےاوررمندننکہتاسرپاےسھچکراعنتدےوتاےسڈنہییک َشیکبدویشت(راٹیئزگآفب)ےتہکںیہ۔‬
84) Rebate:
Concessional amount of bill given by drawer to the drawee.
‫ڈنہییک َشیکبدویشترپراعنیکرمقوجرمندننکہیکرطفےسرمناہیلوکدیاجیتےہ۔‬

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85) Insolvent/Insolvency
When a person’s asset are not sufficient to pay off his debts.
‫اوسنولی)ےتہکںیہ۔‬
‫ت‬ (‫خیسکصخشیکذہمدارباںاےکساباوثںےسئزھاجںیوتاےسدویاہیل(اوسنولن)اورایکسایسیاحلدویاہیل َپ‬
86) Promissory Note:
An unconditional written promise by one person to another person signed by promisor to pay the
certain amount after a specified time to a specified person or bearer.
‫الہکبےہ۔‬
‫خزیداراکفزوخرکےنواےلےکبامرحتئزیودعہہکوہرقمرہوقرپرمقادارکدےاگدینشڈنہی(رپوزیمریونٹ) ا‬
87) Acceptance of a Bill:
Willingness for the payment given by drawee by signing on the bill.
‫خرمناہیلبرپتاےنپدطختسرکباےہوتاےسبیکوبقتیل(ایکسبٹسنیٹآفبت)ےتہکںیہ۔‬
88) Benefits of Bill of Exchange:
 It is a legal evidence of debt.
 A creditor can sue on the bill its self.
 Convenient method for transfer of debt.
 It can be cashed before due date by discounting.
‫ہیفزضیکاقونینوگا یوہیتےہ۔‬
‫فزضوخاہاسیکدمدےسسیکرکاتکسےہ۔‬
‫ہیفزضیکادایگیئےکےیلوہسلدہرطہقیاکرےہ۔‬
‫ڈنہیوکرقمرہدمتےسےلہپکنبےسڈاکسونیھبرکوابااجاتکسےہ۔‬
‫ت‬

CH #7. Special Journal

89) Cash Book/Cash Journal:
A book in which all transaction relating with cash are recorded.
OR
A book in which all cash payments and receipts are recorded.
‫ایسیاتکبسجںیمرصفشیکنیلدنیوکدرجایکاجےشیکبالہکیتےہ۔‬
90) Purchases Book/Purchases Journal:
A book in which only all credit purchases of goods are recorded.
‫ایسیاتکبسجںیماداھرخزیدوکدرجایکاجےئرپزیچبالہکیتےہ۔‬
91) Sales Book/Sales Journal:
A book in which only all credit sales of goods are recorded.
‫ایسیاتکبسجںیماداھرفزوخوکدرجایکاجےزلیسبالہکیتےہ۔‬
92) Sales Returns Book/Sales Return Journal:
If sold goods on credit returned by customers are recorded in this book.
‫ایسیاتکبسجںیمفزوخدشہاایشءواسپآےنیکوصرتںیمدرجتیکاجںیئزلیسررٹینبالہکیتےہ۔‬
93) Purchase Return Book/Purchase Return Journal:
If purchased goods on credit returned to the supplier are recorded in this book.
‫ایسیاتکبسجںیم مخزیدیاایشءفزوختتاکروکواسپرکےنےکدعبدرجرکںی۔رپزیچررٹینبالہکیتےہ۔‬
94) Special Journal:
A journal in which transactions relating to a certain special group are recorded.
‫الہکبےہ۔‬
‫شخزلن ا‬
‫ایسیاتکبسجاخص مسبااب ی مسےکنیلدنیوکدرجایکاجباوہ ت‬
95) General Journal:
The transactions which are not fall in special journal are recorded in this journal.
‫ارگامتم مسےکنیلدنیوکاب یاتکبتںیمدرجتایکاجےئوتاےسرنجلخزلنےتہکںیہ۔‬
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96) Debit Note:
On purchases return buyer debit the seller account and informs the seller through a note.
OR
‫وجہکدیتونٹالہکباےہ۔‬،‫خزیدیوہیئاایشءیکوایسپرپخزیدارےنچیبواےلےکااکوکٹنوکدیرکباےہاوراےسابونٹاجریرکباےہ‬
97) Credit Note
On sales return seller credit the buyer account and informs the buyer through a note.
‫وجہکرکیدٹونٹالہکباےہ۔‬،‫یچیبوہیئاایشءیکوایسپرپےنچیبواالخزیدارےکااکوکٹنوکرکیدٹرکباےہاوراےسابونٹاجریرکباےہ‬

CH #8. Cash Book and Bank Reconciliation

Statement
98) Bank
An institution, which deals in money.
OR
An institution, accepting the deposit and advancing the loans.
‫رکبےہکنبالہکباےہ۔‬
‫ااسیادارہوجروےپےسیپاکاکروبار ا‬
99) Bank Charges:
The amount which is charge by the bank against its services.
‫کنباینپخدامتدبےلوجرمقووصلرکباےہاےسکنباچرخزےتہکںیہ۔‬
100) Commercial Bank:
A bank with primary object to earn profit.
‫اےسیکنبنجتاکاینبدیدصقمانمعفامکباوہباےہ۔‬
101) Primary Function of Bank:
To accepting the deposit and advancing the loans.
‫کنباکاونیلدصقمولوگںےسایکناامںیتن(روقم)انیلاوردورسےولوگںوکفزضوکوطررپدانیےہ۔‬
102) Current Deposit Account: (6T)
Bank account which allowed to customers deposit or withdraw money according to own will.
‫ااسیااکونتسجںیمرمٹسکخاچےہرمقعمجرکواےاورخاچےہرمقولکناےرکنااکونالہکباےہ۔‬
103) Saving Account:
Bank account which is suitable for person with low income.
‫ااسیااکونوجہکمکآدمینواےلولوگںےکےیلانمسوہباےہ۔‬
104) Fixed Account:
Bank account from which amount can be withdraw after fixed time period.
‫ااسیااکونسجںیمےسابوصخمصدمتےکدعبرمقولکنایئاجیتکسےہ۔‬
105) Bank Statement:
A statement or copy of customer’s account issued by bank.
‫ایسیداتسوئزسجرپیسکااکونےکامتمنیلدنیاوراقببااجتترپنوہےوہںکنبٹنمٹیٹسالہکیتےہ۔‬
106) Bank Draft:
Bank draft is written order by one bank to its branch to pay a certain amount to the person in whom
favor it is issued.
‫ڈراٹفابرحتئزیمکحباہمےہکنبیکرطفےساسیکئزاچنوکوہاباخصرمقاسصخشوکادارکےسجےکےیلکنبڈراٹفاجریایکایگےہ۔‬
107) Bank Overdraft:
The amount allowed to a customer to withdraw in excess of his account balance.
‫ایسیرمقسجتیککنبےکاگکہوکااجزتوہیتےہہکاےنپااکونںیموجمدرمقےساعایفرمقولکنااتکسےہ۔‬

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108) Pass Book/Banker Book:
Passbook is a copy of the customer’s account in the banker’s ledger.
OR
A copy of customer’s account provided by the bank to the customer.
‫باسباکیپوہیتےہرمٹسکےکااکونیککنبرجیلںیم۔‬
109) Cheque Book:
Book is used to withdraw cash from the bank.
‫ایسیاتکبوجکنباےنپاگکہوکاجریرکباےہباہکوہچیکدمدےسشیکولکناےکس۔‬
110) Cheque:
An unconditional written order by a customer to his to pay a certain some of money to presenter.
‫چابریغرشموطرحتئزیمکحباہمےہوجاگکہکنبوکاجریرکباباہککنباےسشیپرکےنواےلوکبلطدشہرمقادارکے۔‬
111) Order Cheque:
A Cheque which is payable to a specific person.
‫ااسیچوجہکاقب ِاداوہباےہیسکاخصصخشوکیمکح(آرڈر)چالہکباےہ۔‬
112) Bearer Cheque:
A Cheque which is payable to the person who present it.
‫ااسیچوجیسکیھبصخشےکشیپرکےنرپکنباسوکرمقادارکباےہاحلم(ریبر)چالہکباےہ۔‬
113) Crossed Cheque
When two parallel lines drawn on face of a Cheque.
OR
A Cheque bearing two transverse parallel lines on its left upper corner.
‫چ َخ ِکدہ(رکاڈس ت‬
‫چ)الہکباےہ۔‬ ‫ارگچےکاسےنمواےلےصحےکوکبارپدووتمازیالںینئید چندںیوتااسی ت‬
114) Honored Cheque:
A Cheque which is paid on its presentment.
‫ااسیچتسجےکدبےلرمقادارکدیاجےئوتاےسآرنڈچتوہباےتہکںیہ۔‬
115) Dishonor of Cheque:
A Cheque which is not paid on its presentment due to any technical reason.
‫ارگچےکدبےلکنبرمقدےنیےسااکنررکدےاورچواسپرکدےوتایسیوصرتوکچاکرتسمدوہبا(ڈسآرنآفچت)ےتہکںیہ۔‬
116) Endorsement of the Cheque:
When a Cheque is transferred by holder to his creditor for settlement of his debts.
‫خچاکاقضبچتتیسکفزضوخاہبارسیتےصخشوکلقتنمرکداتیےہوتاسلمعوکچیکیلقتنم(اڈنیورسمبنٹآفچ)ےتہکںیہ۔‬
117) Types of Cash Book:
 Single Column Cash Book
 Double Column Cash Book
 Treble/Three Column Cash Book
118) Single Column Cash Book:
A cash book in which only cash transactions are recorded.
‫ایسیاتکبسجںیمرصفشیکےکنیلدنیوکدرجایکاجباےہ۔‬
119) Double Column Cash Book:
A cash book in which cash and bank transactions are recorded.
‫ایسیاتکبسجںیمرصفشیکاورکنبےکنیلدنیوکدرجایکاجباےہ۔‬
120) Treble/Three Column Cash Book:
A cash book in which cash, bank and discount transactions are recorded.
‫کنباورداکسونےکنیلدنیوکدرجایکاجباےہ۔‬،‫ایسیاتکبسجںیمشیک‬

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121) Contra Entry:
An entry in which cash and bank both are involved and recorded on both side of cash book.
‫ایسیایزیسجںیمشیکاورکنبااکوندوونںشالموہےتںیہ۔‬
122) Bank Reconciliation Statement:
A statement which contain a complete and satisfactory detail of the differences of the balances of
cash book and pass book.
OR
A statement prepared to identify the reasons of differences between cash book and pass book.
‫ایسیداتسوئزوجشیکباورباسبےکفزووکواحضرکےنےکےیلایتریکاجیتےہ۔‬
123) Petty Expenses:
Small expenses of business.
‫یک‬
‫اکروبارےکوھچےٹاخزااجتلیلقزردقناخزااجت(یٹیپا یبسزز)الہکےتںیہ۔‬
124) Petty Cash Book:
A book in which only small payments are recorded.
‫ایسیاتکبسجںیمرصفاکروبارےکوھچےٹخزےچدرجےیکاجےتںیہ۔‬
125) Imprest System:
A fixed sum of money is given to cashier for petty expenses for the month.
‫اساظنمںیمابوصخمصرمقشیبییززکبسیززیکرطفےسیٹیپکبسیززوکدیاجیتےہ۔‬
126) Un-presented Cheque:
Cheques which are issued but not presented for payment yet.
‫اےسیچوجاجریےیکاجےتںیہرگمرمقیکووصیلےکےیلشیپںیہنوہےت۔‬
127) Un-credited/Un-collected Cheque
Cheques which are deposit but not yet credited by bank.
‫اےسیچوجعمجرکواےاجےتںیہرگمکنبیکرطفےسعمجںیہنوہےت۔‬
128) Cash Book V/S Pass Book:
Cash Book Pass Book
It is maintained by customer. It is maintained by bank
‫اساتکبوکرمٹسکانبباےہ۔‬ ‫اساتکبوککنبانبباےہ۔‬
Its debit balance shows cash at bank credit Its credit balance shows cash at bank debit
balance shows bank overdraft. balance shows bank overdraft.
‫زرکباوررکیدٹہک سنکنبآورڈراٹفوک۔‬ ‫ااکسدیہک سنشیکوککنبںیم م‬
‫ہاہ ا‬ ‫ااکسرکیدٹہک سنشیکوککنبںیم م‬
‫ہاہزرکبااوردیتہک سنکنبآورڈراٹفوک۔‬

CH #9. Journal Proper and Summary of Book

Keeping to the Trial Balance
129) Closing Entries:
At the end of accounting period, some entries are necessary for transferring balances of account to
trading and profit & loss account.
‫ب‬
‫ااکوگنٹنرپیدےکآخزںیم یلبسززوکئالنئااکونوکلقتنمرکےنےکےیلھچکرضوریارٹنیباںیکاجیتںیہ۔‬

CH #10. Final Accounts: The Completion of

Accounting Cycle
130) Accounting Cycle
Transactions Journal Ledger Trial Balance Final Accounts.
‫تئالنئااکونت‬ ‫ت‬ ‫ترٹالئہک سنت‬ ‫ت‬ ‫ترجیل‬ ‫تروزباہچم ت‬ ‫نیلدنی ت‬
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131) Final Accounts:
Accounts which are finally prepared to show the profit and loss and financial position of a business.
‫آخںیمیسکاکروبارےکعفنواصقنناورایکسامیلتیثیحوک م‬
‫ہاہزرکےنےلیکایترےیکاجےتںیہئالنئااکوسٹنالہکےتںیہ۔‬ ‫اےسیااکوسٹنوجاسلےک ز‬
132) Names of Final Account:
 Trading Account
 Profit & Loss Account
133) Trading Account:
The account which prepared to determine the gross profit or gross loss.
‫ااسیااکونوجاخمانمعف اباخماصقننولعممرکےنےلیکایترایکاجباےہ۔رٹیدگااکونالہکباےہ۔‬
134) Direct Expenses:
The expenses which are directly concerned with purchases and production.
Example: Carriage, Wages, Factory Rent & Motive Power.
‫یکس‬
‫زیاورانوکانبےنےسوہباےہتئزاہ ِراساخزااجت(ڈائزٹکیا یبسزز)الہکےتںیہ۔‬
‫اےسیاخزااجتنجاکقلعتاایشءیکخ د‬
135) Direct Income/Revenue:
The income earned in routine business activities.
Example: Sales.
‫ایسیآدمینوجاکروباریکروزرمَہرسرگویمںےسامکیئاجیتےہئزاہ ِراسآدمین(ڈائزٹکیامکن)الہکیتےہ۔‬
136) Gross Profit:
If direct income exceeds direct expenses it shows gross profit. Direct Income>Direct Expenses.
‫ئزاہ ِراساخزااجتےسزبادہوہوتاسفزووکاخمعفن(رگاسرپاٹف)ےتہکںیہ۔‬،‫ارگئزاہ ِراسآدمین‬
137) Gross Loss:
If direct expenses exceeds direct income it shows gross profit. Direct Expenses>Direct Income.
‫اخااجتتئزاہ ِراسآدمینےسزبادہوہںوتاسفزووکاخماصقنن(رگاسالس)ےتہکںیہ۔‬
‫ارگئزاہ ِراس ز‬
138) Profit & Loss Account:
The account which prepared to determine the net profit or net loss.
‫ااسیااکونوجاخصلانمعفبااخصلاصقننولعممرکےنےکےیلایترایکاجباےہرپاٹفاڈنیالسااکونالہکباےہ۔‬
139) Indirect Expenses:
The expenses which are not directly concerned with purchases and production.
Example: Rent, Salaries, Bank Charges & Depreciation.
‫یکس‬
‫زیاورانوکانبےنےسںیہنوہباےہتباولا ہطاخزااجت(ایدائزٹکیا یبسزز)الہکےتںیہ۔‬
‫اےسیاخزااجتنجاکقلعتاایشءیکخ د‬
140) Indirect Income:
The income earned by business other than routine activities.
Example: Interest Received, Dividend Received & Bad Debts Recovered.
‫ایسیآدمینوجاکروباریکروزرمَہرسرگویمںےکالعوہامکیئاجیتےہباولا ہطآدمین(ایدائزٹکیامکن)الہکیتےہ۔‬
141) Net Profit
If indirect income exceeds indirect expenses it shows net profit. Indirect Income>Indirect Expenses
‫ارگباولا ہطآدمینباولا ہطاخزااجتےسزبادہوہوتاسفزووکاخصلانمعف(یترپاٹف)ےتہکںیہ۔‬
142) Net Loss:
If indirect expenses exceeds indirect income it shows net loss. Indirect Expenses>Indirect Income
‫ارگباولا ہطاخزااجتباولا ہطآدمینےسزبادہوہوتاسفزووکاخصلاصقنن(یالس)ےتہکںیہ۔‬
143) Balance Sheet:
A statement of assets and liabilities which shows financial position of business.
‫آخںیمیسکاکروباریکامیلتیثیحوک م ز‬
‫ہاہرکےنےلیکایتریکاجیتےہہک سنشالہکیتےہ۔‬ ‫اباہثاجتاورذہمدارویںیکایسیرہفسوجاسلےک ز‬

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144) Tangible Assets:
The assets which have physical existence and can be touched and seen.
OR
Assets having physical form.
Example: Machinery, Land & Building.
‫یبن‬
‫اےسیاباہثاجتنجیکامدیاحلوہیتےہنجتوکوھچااورداھکیاجاتکسےہامدیاباہثاجت( جبیلززاسی)الہکےتںیہ۔‬
145) Intangible Assets:
The assets which have no physical existence and cannot be touched.
OR
Assets having no physical form.
Example: Good Will, Copy Rights & Trade Mark.
‫بیبن‬
‫اےسیاباہثاجتنجیکامدیاحلتںیہنوہیتےہنجتوکوھچااورداھکیںیہناجاتکسےہریغامدیاباہثاجت(ا جبیلززاسی)الہکےتںیہ۔‬
146) Fixed Assets:
The assets which have long life bought for a long period of time.
Example: Land, Building & Furniture.
‫لقتسماباہثاجت(ڈسکفاسی)الہکےتںیہ۔‬،‫اےسیاباہثاجتوجلقتسماامعتسلےکےیلخزیدےیگوہں‬
147) Current Assets: (3T)
The assets which have short life and can be converted into cash after some time.
Example: Cash, Stock & Debtor.
‫اےسیاباہثاجتنجیکزدنیگاباسلےسمکیکوہنجوکآاسینےسشیکںیمدبتلیایکاجےکسرواںباریغلقتسماباہثاجت(رکناسی)الہکےتںیہ۔‬
148) Liquid/Quick/Floating Asset:
The assets which are in form of cash or can be converted into cash quickly.
Example: Cheque, Bank Draft & Bonds.
‫اسی)الہکےتںیہ۔‬
‫اےسیاباہثاجتوجشیکیکلکشںیموہںبانجوکوفریوطررپشیکںیمدبتلیایکاجےکسامعئاباہثاجت(وکیلڈ ت‬
149) Contingent Assets:
Assets which come into being on happening of an event.
‫اےسیتاباہثاجتوجیسکاخصاحالتںیمووجدںیمآںیئرشموطاباہثاجت(کبنیجاسیت)الہکےتںیہ۔‬
150) Wasting Assets
Assets whose value gradually reduce on account of use finally exhausted completely.
Example: Mine & Forest.
‫اےسیاباہثاجتنجیکدقرآہتسہآہتسہمکوہیتوہاورآخزاکردقررفصوہاجیتوہیلیلحتاباہثاجت(ویسبیگاسی)الہکےتںیہ۔‬
151) Outstanding Assets:
Income earned but not received and expenses paid in advance.
Example: Prepaid Expenses & Accrued Income.
‫ایسیآدمینوجووصلرکینوہاوراےسیخزےچوجاکموہےنےسےلہپادارکدےیاجںیریغووصلاباہثاجت(آوٹڈنیٹسگاسیت)الہکےتںیہ۔‬
152) Fixed/Long term Liabilities:
The debts which are payable after a long period of time.
Example: Long-term Debt, Bank Loan & Debentures.
‫یب‬
‫ایسیذہمدارباںوجابےبملےکرعہصےکدعبادارکینوہںمسبقلدہمدارباں(ڈسکفال یلبییزز)الہکیتںیہ۔‬
153) Current/Liquid/Short term Liabilities:
The debts which are payable after a short period of time.
Example: Creditors & Bank Overdraft
‫یب‬
‫ایسیذہمدارباںوجاباسلےکرعہصےکادنرادنرادارکینوہںرواں ابریغلقتسمذہمدارباں(رکنال یلبییزز)الہکیتںیہ۔‬
154) Contingent Liabilities:
The liabilities which are arise on happening of an event.
‫یب‬ ‫ک‬
‫ایسیذہمدارباںوجیسکاخصوم عےکوہےنرپواخاالداوہںرشموطذہمدارباں( یبنجنٹال یلبییزز)الہکیتںیہ۔‬

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155) Marshalling:
The order in which assets and liabilities are stated in balance sheet.
OR
An arrangement in which asset and liabilities are shown in balance sheet.
‫اباہثاجتاورذہمدارویںوکہک سنشںیماباخصئزبیتےسانھکلامرشاگنلالہکباےہ۔‬
156) Freight(Carriage):
Charges paid on transportation of goods or assets.
‫ااسیخزہچوجاایشء اباباوثںیکلقنولمحرپاداوہفز ن(رکاہی)الہکباےہ۔‬
157) Freight (Carriage) Inward/Freight (Carriage) on purchases:
A freight paid on purchases.
‫ااسیرکاہیوجاایشءیکخزیداریرپاداایکاجےئدایلخرکاہی(فز ناونرڈ)الہکباےہ۔‬
158) Freight (Carriage) Outward/Freight (Carriage) on Sales:
A freight paid on sales.
‫الہکبےہ۔‬
‫ااسیرکاہیوجاکروباراایشءیکفزوخرپاداایکاجےئاخرک رکاہی( زف نآوٹورڈ) ا‬
159) Working Capital:
The amount by which current assets exceed current liabilities.
OR
The amount of total current assets less total current liabilities.
‫سجرمقےسریغلقتسماباہثاجتریغلقتسمذہمدارویںےسئزھاجےتاےسرسامہیزئزِاکر(ورگنکلٹپیک)ےتہکںیہ۔‬
160) Formation Expenses/Preliminary Expenses
Expenses made by promoters of company in start.
OR
The expenses incurred in the formation of the company.
‫یکس‬
‫یسکینپمکےکدمداگروجادتبایئخزےچرکےتںیہادتبایئاخزااجت(ئارنشیما یبسزز)الہکےتںیہ۔‬
161) Goodwill:
The value of a business in excess of the total investment of owner.
OR
Extra saleable value of business due to its good reputation.
OR
The benefit and advantage of good name or reputation of business.
‫امکلےکرسامہیےساکروباریکئزیھوہیئتمیقاکروباریاسھک(ڈگول)الہکیتےہ۔‬

CH #11. Adjustments and Their Effects on

Final Account
162) Adjustment:
The act of making correct record of a transaction which has been entered incompletely or wrongly.
‫طلغبابالمکمدرجےیکےئگتنیلدنیوکدرسدرجرکےناکلمعایدٹنمٹسجالہکباےہ۔‬
163) Opening Stock:
Stock received from last year at the start of current year.
‫ےلھچپاسلاکااٹسکوجاسلےکرشوعںیموصملوہباےہاوگنپااٹسکالہکباےہ۔‬
164) Closing Stock:
Unused and unsold stock at the end of year.
‫ااسیااٹسکوجاسلےکآخزںیم ےنکےسرہاجےئولکزگاٹسکالہکباےہ۔‬

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165) Prepaid Expenses:
The expenses which have been paid in advance but not yet incurred.
Example: Rent paid in advance
‫یکسب‬
‫اےسیاخزااجتنجوکےلہپادارکدبااجےیگشیپاخزااجت(رپیڈیپا یبسزز)الہکےتںیہ۔‬
166) Outstanding Expenses:
The expenses which have been incurred but not yet paid.
Example: Outstanding Rent or Salaries
‫یکسب‬
‫اکروبارےکاےسیاخزااجتوجوہوتےئگںیہ نکیایھباداںیہنےیکےئگاقب ِادااخزااجت(آوٹڈنیٹسگا یبستزز)الہکےتںیہ۔‬
167) Accrued Revenue/Outstanding Income:
The income which has been earned but not yet received.
Example: Rent Receivable
‫ایسیآدمینوجامکیلوہرگمووصلہنیکوہاقب ِووصلآدمین(رپیڈیپامکن)الہکیتےہ۔‬
168) Unearned Revenue/Prepaid Income
The income which has been received in advance but not yet earned.
Example: Rent or Commission received in advance
‫ایسیآدمینےسجامکےنےسےلہپووصلرکایلاجےاناریدروییوینالہکیتےہ۔‬
169) Interest:
An amount paid for the use of money for a period of time.
‫وہرمقوجابرعہصبےسیپوکاامعتسلرکےنےکےیلاداباووصلیکاجیتےہ۔‬
170) Interest on Loan:
Amount on loan due not yet paid or received.
.‫وہرمقوجفزےضرپاقب ِادابااقب ِووصلوہیتےہ‬
171) Interest on Capital:
Interest charged by owner on his capital.
‫ااسیاڑنسوجامکلیکرطفےسلٹپیکرپاچرجایکاجباےہ۔‬
172) Interest on Drawings:
Interest charged by business on drawings
‫ااسیاڑنسوجاکروباریکرطفےسڈریزرپاچرجایکاجباےہ۔‬
173) Depreciation:
Gradually decrease in the value of fixed by the passage of time.
Example: Depreciation charge on machinery
‫لقتسماباہثاجتوکاامعتسلرکےنےسانیکتمیقںیموجلسلسمیمکوہیتےہفزوسدیگ(ڈرپیییستانشی)الہکیتےہ۔‬
174) Bad Debts:
Irrecoverable debts.
OR
Amount which cannot be recovered from debtor.
‫ایسیرمقوجرقموضےسووصلہنوہےکسبااقب ِووصلفزہض(ڈیبڈیت)الہکیتےہ۔‬
175) Doubtful Debts:
The debts whose recovery is uncertain.
‫اےسیفزےضنجرپکشوہہکشایدوہووصلہنوہسکیںمسکوکباہبتشمفزےض(ڈاوٹلفڈسٹی)الہکےتںیہ۔‬
176) Provision:
A liability of uncertain timing or amount.
‫ریغوتم عوقبارمقیکذہمداریوکاامتہم(رپوئزن)ےتہکںیہ۔‬

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CH #12. Work Sheet

177) Work Sheet:
A sheet which is based on ten column, from which we calculate profit/loss and financial position of
business.
‫آخںیمامتمااکوسٹناکزجتہیرکےنےلیکایتریکاجےورکشالہکیتےہ۔‬
‫ایسیشوجاسلےک ز‬
178) Income Statement:
A statement which is prepared to ascertain the net income or net loss of the business for accounting
period.
‫ایسیداتسوئزوجاخصلآدمین اباخصلاصقننولعممرکےنلیکایتریکاجیتےہامکنٹنمٹیٹسالہکیتےہ۔‬

CH #13. Financial Statements

179) Selling Expenses:
All expenses regarding sale of goods sending the goods to buyer.
Example: Carriage Outward, Advertisement & Salaries
‫یک‬
‫امتماخزااجتوجاایشیکفزوخےسکلسنموہےتںیہفزوخےکاخزااجت(شیلیگا یبسزز)الہکےتںیہ۔ ت‬

CH #14. Capital and Revenue

180) Capital Expenditure:
Expenditures of non-recurring nature whose benefit to business more than one year.
Example: Machinery purchased
‫کب‬
‫اےسیاخزااجتوجباربارہنوہںاورنجاکئاہدہاباسلےسزبادہاکوہرسامیئاخزااجت( یبیلایکسبیبدرچی)الہکےتںیہ۔‬
181) Revenue Expenditure:
Expenditures of recurring nature whose benefit to business less than one year.
Example: Salaries, Rent & Wages
‫اےسیاخزااجتوجبارباروہںاورنجاکئاہدہاباسلےسمکاکوہامیلاخزااجت(رویوینایکسبیبدرچی)الہکےتںیہت۔‬
182) Deferred Revenue Expenditure:
Revenue expenditure which benefit extend to future accounting year or years.
Example: Preliminary Expenses, Heavy Expenses on Advertisement
‫اےسیاخزااجتنجاکئاہدہآےنواےلاسولںںیموہباےہاوتلایئامیلاخزااجت(ڈرفیڈرویوینتایکسبیبدرچی)الہکےتںیہ۔‬
183) Capital Receipts:
The amount which is received by sale of fixed asset.
Example: Cash received from sale of machinery or furniture
‫ایسیووصایلںوجلقتسماباہثاجتوکفزوخرکےنےساحلصوہیتںیہرسامیئووصایلںالہکیتںیہ۔‬
184) Revenue Receipts:
The amount which is received by sale of floating asset or rendering the services.
Example: Cash received from sale of goods, Interest or Commission received
‫ایسیووصایلںوجریغلقتسماباہثاجتباخدامتوکفزوخرکےنےسووصلوہیتںیہامیلووصایلںالہکیتںیہ۔‬
185) Capital Profit:
Profit earned on sale of fixed.
Example: If machinery sold for Rs. 75000 worth Rs.50000 then Rs.15000 will Capital Profit.
‫ااسیانمعفوجلقتسماباہثاجتوکفزوخرکےنےساحلصوہباےہرسامیئانمعف(لٹپیکرپاٹف)الہکباےہ۔‬

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186) Revenue Profit:
Profit earned on sale of floating asset.
Example: Profit on sales of goods.
‫ااسیانمعفوجریغلقتسماباہثاجتوکفزوخرکےنےسووصلوہباےہامیلانمعف(رویوینرپاٹف)الہکباےہ۔‬
187) Capital Loss:
Any loss sale of fixed assets.
Example: If machinery sold for Rs. 75000 worth Rs.100000 then Rs.25000 will Capital Loss.
‫ااسیاصقننوجلقتسماباہثاجتوکفزوخرکےنےسوہباےہ۔ترسامیئاصقنن(لٹپیکالس)الہکباےہ۔‬
188) Revenue Loss:
Any loss on sale of floating assets.
Example: Loss on sales of goods.
‫ااسیاصقننوجریغلقتسماباہثاجتوکفزوخرکےنےسوہباےہ۔تامیلاصقنن(رویوینالس)الہکباےہ۔‬
189) Capital Payment:
Any amount paid for a capital expenditure.
Example: Machinery purchased for Rs. 500000
‫ایسیرمقوجرسامیئاخزااجتےکےیلادایکاجیتےہرسامیئادایگیئ(لٹپیکبنمنٹت)الہکیتےہ۔‬
190) Revenue Payment
Any amount paid for a revenue expenditure.
Example: Salaries, Wages & Rent
‫ایسیرمقوجامیلاخزااجتےکےیلادایکاجیتےہامیلادایگیئ(روییوینبنمنٹت)الہکیتےہ۔‬

CH #15. Rectification of Errors

191) Errors of Omission:
Such errors occurred when a transaction is omitted to be recorded in books of accounts.
Example: Goods purchased but forget to record in purchase book.
‫اتیسیتایطلغںنجںیمیسکنیلدنیوکاھکوتںمبںانھکلوھبلاجںیئتاںیہنوھبلوچکیکایطلغں(ائزرزآفاونشیم)ےتہکںیہ۔‬
192) Errors of Commission:
Such errors occurred when a transaction has been recorded in wrong account of same class.
Example: Goods purchased from Mr. A wrongly credited to Mr. B account.
‫اتیسیتایطلغںوجنیلدنیوکطلغاھکوتںںیمدرجرکےنےسوہںاںیہناراکتیبایطلغں(ائزرزآفنشیمک)ےتہکںیہ۔‬
193) Errors of Compensating:
Errors which are cancelled by themselves or other errors in the net result.
‫کم‬
‫اتیسیتایطلغںوجوخدوخبد متوہاجںیئتبایسکدورسییطلغےساںیہناقتمبایطلغں(ائزرزآف یبسیبیگ)ےتہکںیہ۔‬
194) Errors of Posting:
When an entry is passed correctly in Journal but posted wrong to the ledger.
OR
Errors occurred during posting from journal to ledger.
Example: Goods sold to Mr. A but wrongly to post to Mr. B account.
‫اتیسیتایطلغںوجتروزباہچمےسرجیلںیمسوپ گنٹےکدرانوہیتںیہاںیہنتائزرزآفسوپ گنٹےتہکںیہ۔‬
195) Errors of Casting:
Errors which are occurred due to under cast or over cast in journal or ledger.
Example: Goods sold for Rs. 1000 but recorded for Rs.500 or Rs. 1500
‫اتیسیتایطلغںوجتروزباہچم ابرجیلںیمرمقوکمکبازبادہےنھکلیکوہجےسوہںتاںیہنائزرزآفاک گنٹےتہکںیہ۔‬

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196) Errors of Principle:
Errors which are against any principle of accounting.
Example: Repairs to furniture has been wrongly debited to furniture account.
‫اتیسیتایطلغںوجااکوگنٹنےکیسکاوصلےکفالفوہںاںیہناوصلیکایطلغں(ائزرزآفرپلپسن)ےتہکںیہ۔‬
197) Error of Book-keeping:
Errors which are made in the journal or ledger.
‫ایسیتایطلغںوجروزباہچمبارجیلںیموہاںیہناسحبدارییکایطلغں(تائزرزآفبگنپیک)ےتہکںیہ۔‬
198) Errors of Trial Balance:
Errors which are made during preparation of trial balance.
‫ایسیتایطلغںوجرٹالئہک سنیکایتریںیموہںاںیہنرٹالئہک سنیکایطلغں(ائزرزآفرٹالیہک سن)ےتہکںیہ۔‬
199) Dual Side Errors :
Errors which effects the both aspects of a transaction.
‫ایسیتایطلغںوجنیلدنیےکدوونںولہپوںوکاتمئزرکیتںیہاںیہندورط ہایطلغں(ڈویلاسدیئائزرز)ےتہکںیہ۔‬
200) Suspense Account:
An account in which those transactions are entered which cannot be placed to their proper account.
‫شس‬
‫ااسیاھکہتسجںیماےسیتنیلدنیوکدرجایکاجباسجوکوفرتاًیسکحیحصاھکہتںیمںیہناھکلاجاتکس یبسااکونالہکباےہ۔‬

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I am thankful to teachers who shared their insights and experience with me. I wish to thanks for their
valuable comments.
SPECIAL THANKS
Sir Syed Ihsaan Ali
Sir Sufyan Butt
Sir Anees Sikander
Sir Muhammad Manan
Sir Muhammad Nadeem
Miss Sehar Sarwar Butt
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Sir Imran Ali (M.com) Page 19/ 19 Principle of Accounting