Commerce Paradigm

5 major elements of Accounting for every commerce students

Debit and credit in short

There are so many terms in accounting which are not used anymore in modern day accounting. In this post, we are going to look at some of the old and new name of some accounting terms.

1. Old name: Final accounts
New name: Financial statement

2. Old name: Trading and Profit & loss account
New name: Income Statement

3. Old name: Sales
New name: Revenue
4. Old name: Purchases
New name: Raw materials (Ordinary goods purchased)

5. Old name: Cost of goods sold
New name: Cost of sales

6. Old name: Stock
New name: Inventory (of raw materials and finished goods)

7. Old name: Sundry expenses
New name: Other operating expenses

8. Old name: Sundry income
New name: Other operating income

9. Old name: Interest receivable
New name: Investment revenues

10. Old name: Interest payable
New name: Finance costs

11. Old name: Net profit
New name: Profit (before tax) for the year

12. Old name: Fixed assets
New name: Non-current assets

13. Old name: Land and buildings
New name: Property

14. Old name: Investments
New name: Investment property

15. Old name: Stock
New name: Inventory

16. Old name: Debtors
New name: Trade receivables

17. Old name: Prepayments
New name: Other receivables

18. Old name: Bank and cash
New name: Cash (and cash equivalents)

19. Old name: Creditors
New name: Trade payables

20. Old name: Accruals
New name: Other payables

21. Old name: Long term liabilities
New name: Non-current liabilities

22. Old name: Capital
New name: Equity

23. Old name: Balance sheet
New name: Statement of financial position

24. Old name: Provision for bad/doubtful debt
New name: Allowance for doubtful debt.

25. Old name: Cash flow statements (previously called Funds Flow Statement)
New name: Statement of cash flows

26. Old name: Capital reserve
New name: Gain on a bargain purchase

27. Old name: Minority interest
New name: Non controlling interest
NB: This does not mean that the old terms are wrong

Follow "Commerce Paradigm" for learning Accounting Concept

Depreciation starts from Date of "put to
use " of Fixed Assets

Accounts এর মূল কথা

অর্থের মূল্য ধরে রাখতে সঞ্চয়ের চেয়ে বিনিয়োগ জরুরি

Accounting is the language of business—if you can’t read numbers, you can’t see opportunities