TRANSACTIONS LEDGERS

Let us learn again some ledgers used for transactions 

LIABILITIES:-
The amount payable to other parties from the business e.g.amount payable to creditors, Bank loan, payable interest etc.

CAPITAL:-
Investments made by the owner into business. The investments can be in terms of cash, goods, assets, etc.

NOTE:- In accountancy, capital means the amount or loan given by the businessman to the business. So the capital is treated as a kind of liability (the amount payable) of the business.

DRAWING:-
Total amount of goods, cash or any other assets withdrawn by the proprietor from the business for his personal use are called Drawing.

DISCOUNT:-
1. Trade Discount:-
               Trade discount does not appear in books of A/c. for e.g.purchase of worth Rs.600/- @ Rs.400/- thus trade discount of Rs.200/- is provided.

2. Cash Discount:-
             Cash discount appears in the books of A/c. 
for e.g.  Received from Raj Rs.1000/- less 2% cash discount. Thus cash of Rs.20/- provided.