Final accounts – Key Words

Debtors – D for deadly People who owe us money

Creditors – C for Crap People we owe money

Assets – A for awesome Things of value owned by a business

Liabilities – L for lousy Things we owe that must be repaid within one year such as bank overdraft and creditors

Fixed Assets Long term items of value owned by the business e.g. land, buildings, motor vehicles, machinery

Current Assets Items of value owned by the business that will be used up within a year such as : Stock Debtors Cash

Current Liabilities Things we owe that we must pay within a year such as Bank overdraft Creditors

Long term liabilities Things the business owes that will be repaid over a term longer than 5 years such as a long term loan also called a debenture

Purchases Goods purchased for resale e.g. clothes bought to be resold

Sales Revenue received from sale of goods that the company normally trades in e.g. clothes shop selling clothes is sales Clothes shop selling old table used to display clothes is not counted as sales as it does not normally trade tables

Gains Revenue received by the business other than sale of goods normally traded e.g. rent receivable, interest receivable Hint – in your trading profit and loss and appropriation, anything receivable is a gain