Goods or Merchandises

It refers to something which has been purchased by a trader for resale purposes or anything which has been manufactured for selling purposes.

Sales

The goods are purchased for selling purposes. When theses goods are sold to customers at a specific price, it is said that sales have been made.

Purchases

In accounting language the word “Purchases” has special meaning. When saleable goods are brought in a business it is said that purchases have been made.

Trade Discount

Discount allowed by manufacturer or wholesaler at the time of selling goods to retailer as a deduction from the list price or catalogue price is called trade discount.

Realisation Concept

According to this concept, revenue should be recognized at the time when goods are sold or services are rendered.

Matching Concept

The Concept of offsetting expenses against revenue on the basis of “ Cause and effect” is called the Matching Concept.

Accounting Period Concept

According to this concept, “the life of the business is divided into a series of relatively shore accounting periods of equal lengths for studying the results shown by the business