Financial Terms

Terms used in financial accounting

Debtor

Person who owes money or money’s worth.

Creditor

Person to whom money is owed.

Asset

Everything owed by it and includes receivable from others.

Liabilities

All amounts owed or payable by it.

Capital

Amount invested in the business and refers to money’s goods other assets or services.

Expense

Amount paid in return for any service received.

Income

Amount received in return for any service rendered.

Journal

Book of daily record and shows in a systematic manner all transactions of a business arranged in a chronological or data wise order.

Voucher

It is a document of trade is an official paper giving information, proof or evidence of some business transaction.

Credit note

Credit note is a document of trade indicating hat the addressee has been credited by the sender in his books either for return of goods or for some other reason.

Debit note

It is a document of trade indicating hat the addressee has been debited by the sender in his books either for return of goods or for some other reason.

Invoice

It is a document of trade indicating that document issue with the goods sold.