Accounts for tally Part-1

Goods v/s Assets

• Goods-The commodity in which we deal on regular basis .
• Assets -The commodity what we purchase for long term uses 

Assets 

Any person ,organization,commodity,article or any  factor which brings utility over the years and increases the profitability is termed as asset
Example : building,plant and machinery,furniture,cash,debtors etc.

Expenditure 

EXPENDITURE IS THE OUTFLOW OF CASH 

TYPES:

1. REVENUE NATURED EXPENDITURE(EXPENSE)

• regular basis
• short term utility
• eg: purchase of raw material,salary,rent

    2.   CAPITAL  NATURED EXPENDITURE(ASSETS)

• once/sometimes
• long term utility
• eg: purchase of building,plant &machinery,furniture