Author accountingmantra

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Basic Accounting Normal Balances

The sum of the increases in an account is usually equal to or greater than the sum of the decreases in the account. Thus, the normal balance of an account is either a debit or credit depending on whether increases in the account are recorded as debits or credits.

Net Assets on AccountingMantra

Net worth or net assets means the excess of the total assets of a business over its total of liabilities at any particular point in time

Transaction

In Accounting, the term ‘transaction’ refers to any event which is measurable in the terms of money and which changes the financial position of the business concern.

Net worth

Net worth or net assets means the excess of the total assets of a business over its total of liabilities at any particular point in time.

Proprietor or Owner

Proprietor is the person who invests money or money’s worth into the business as a capital, and bears all the risks of the business. For the risks undertaken by him, he is rewarded with profits in the business

business-entity

The term ‘Entity’ means something or someone having a separate existence. It can be a thing or a person having a definite separate existence.

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