Sir Waqar Pasha

Finally, long awaited project has completed successfully.
Second year accounting kit ready to serve now onwards.

PREPAID EXPENSES
It refers to those advance payments against skills to be taken, which hasn't started its time duration.

BALANCE SHEET:
It is prepared at the end of every year. It is the last accounting record which a firm prepared at the completion of accounting period. states the current financial position of the business. It shows that the assets of the business and the share of outsiders and investment of the owner.

Creditors are those suppliers, whom the business buys inventory on account.

Debtors are those clients or customers who owed our services or goods but haven't paid. Therefore, in our books of account, an account with the receivable will be recorded in asserts side.

BANK OVERDRAFT:
It is an additional or excessive amount which a bank pay on behalf of the business or firm to settle the payments, while bank balance having NSF.
It is also known as Cash Credit.

STRAIGHT LINE METHOD:
In this method of depreciation, the amount of depreciation of every year remains same.

FIFO:
First in first out.

LIFO:
Last in first out

DEBIT:
Left hand side of an account.

CREDIT:
Right hand side of an account.

COST OF GOODS SOLD:
Opening inventory + Purchases - Ending inventory

ACCOUNTING CYCLE:
Business transaction
General journal
Ledger posting footing and balancing
Trial balance
Periodic adjustments
Adjusted trial balance
Financial statement
Worksheet
Closing reversing entries
Opening entry
Reversing entries (Optional)

QUICK ASSETS:
Cash, Bank balance and Marketable securities are considered as Quick Assets, while determining Acid Test or Quick Ratio.