Accounting Glossary

Accounting and financial terms including ledgers, profit & loss, payment tracking, and bookkeeping concepts for Indian SMEs.

29 terms

Inventory Accounting Sales Purchase GST Manufacturing All Terms

Accounts Payable (AP)Total money owed by a business to suppliers for goods or services purchased on credit Accounts Receivable (AR)Total money owed to a business by customers for goods or services sold on credit Balance SheetA financial statement showing business assets, liabilities, and owner's equity at a specific date Bank ReconciliationProcess of matching business records with bank statement to identify discrepancies Bill-wise Profit / Invoice ProfitProfit calculated on each individual sales invoice Cash BookA financial record of all cash receipts and payments in a business Closing StockThe value of unsold inventory at the end of an accounting period Day Book / Daily Transaction RegisterA chronological record of all daily business transactions Expense / Business ExpenseMoney spent on running your business that is not a direct purchase of goods FIFO (First In First Out)Inventory valuation method where oldest stock is sold first Inventory Turnover RatioA metric showing how many times inventory is sold and replaced in a period Item-wise Profit ReportA report showing profit earned on each individual product across all sales LIFO (Last In First Out)Inventory valuation method where newest stock is sold first Margin / Profit MarginThe percentage of selling price retained as profit after deducting cost Opening StockThe value of inventory at the beginning of an accounting period Party BalanceThe outstanding amount owed to or by a customer or supplier Party LedgerA record of all transactions with a specific customer or supplier Party-wise ReportA report grouping transactions by customer or supplier to track purchase, sales, and profit per party Payment In / ReceiptMoney received from a customer against outstanding invoices Payment OutMoney paid to a supplier against outstanding purchase bills Payment VoucherA document recording a payment made to a supplier or for a business expense Profit and Loss Statement (P&L)A financial report showing total revenue, expenses, and net profit or loss Receipt VoucherA document recording a payment received from a customer or other party Stock ValuationThe process of calculating the monetary value of inventory held by a business Sundry CreditorA supplier to whom your business owes money for goods purchased on credit Sundry DebtorA customer who owes money to your business for goods sold on credit Trial BalanceA statement listing all ledger account balances to verify arithmetic accuracy of books Weighted Average CostInventory valuation using average cost of all units in stock Working CapitalMoney available for day-to-day business operations after covering short-term obligations

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