This is a monetary amount that is paid against receiving of goods or services that have been offered by a particular party.

The various types are:

• Salaries
• Wages
• Rent
• Commission
• Interests
• Bills of various services (Gas, Electricity, Oil, Water, Telephone)
• Carriage on both outward and inward journey
• Customs and Freight
• Advertisements expenditure
• Interest on Bank Loan and Capital
• Legal charges
• Audit fees
• Drawings
• Discounts
• Bills of Discount
• Untoward incidents not covered by Insurance company
• Bad debts
• Insurance

Links of Previous Main Topic:-

• Preparation of final accounts
• Recording of business transaction basis of accounting
• Single entry system of bookkeeping
• Double entry system of bookkeeping
• Classification of accounts
• Rules of double entry or accounting rules
• Accounting cycle
• Journal
• Ledger
• Trial balance
• Income

Links of Next Financial Accounting Topics:-

• Assets
• Liabilities
• Final accounts
• Trading account
• Profit and loss account
• Balance sheet
• Adjustments in financial accounting

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