Accounting Definitions
Key Term Definition
Accounting 𝐴𝑠𝑠𝑒𝑡𝑠 (𝐴) = 𝑂𝑤𝑛𝑒𝑟 ! 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦 (𝑂𝐸) + 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Equation
Assets Property owned by a business that can be converted to cash and that lasts a long
time.
Bank Account Account used to deposit money received by the business and all payments of the
business.
Banking Banks operate in the banking sector. Banks are financial institutions that
safeguard the money of businesses or lend money to businesses.
Capital Money and other assets the owner invested in the business so that the business
can start.
Cash Float Money kept in the cash register till from which customers are given change.
Cash Journals Used to record daily cash transactions of a business.
Cash Payments All cheques (or EFT payments) drawn on a current bank account of a business are
called payments.
Cash Payments Record of all payments made by EFT.
Journal
Cash Receipts All amounts of money received by a business and deposited in the business’s bank
account are called receipts.
Cash Receipts Record of all cash received by a business.
Journal
Credit The right-hand side of the ledger account is called the credit side.
Creditors People or institutions that the business owes money to.
Debit The left-hand side of the ledger account is called the debit side.
Debtors People or institutions that owe the business money.
Drawings Money or other assets taken by the owner from the business for personal or
family use.
Electronic Fund Is used to move money from one account to another. The transaction is
Transfer (EFT) completed electronically, and the two accounts can be at the same bank or
different banks.
© E-Loné Scheepers 2024 Grade 8 Accounting
Key Term Definition
Accounting 𝐴𝑠𝑠𝑒𝑡𝑠 (𝐴) = 𝑂𝑤𝑛𝑒𝑟 ! 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦 (𝑂𝐸) + 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Equation
Assets Property owned by a business that can be converted to cash and that lasts a long
time.
Bank Account Account used to deposit money received by the business and all payments of the
business.
Banking Banks operate in the banking sector. Banks are financial institutions that
safeguard the money of businesses or lend money to businesses.
Capital Money and other assets the owner invested in the business so that the business
can start.
Cash Float Money kept in the cash register till from which customers are given change.
Cash Journals Used to record daily cash transactions of a business.
Cash Payments All cheques (or EFT payments) drawn on a current bank account of a business are
called payments.
Cash Payments Record of all payments made by EFT.
Journal
Cash Receipts All amounts of money received by a business and deposited in the business’s bank
account are called receipts.
Cash Receipts Record of all cash received by a business.
Journal
Credit The right-hand side of the ledger account is called the credit side.
Creditors People or institutions that the business owes money to.
Debit The left-hand side of the ledger account is called the debit side.
Debtors People or institutions that owe the business money.
Drawings Money or other assets taken by the owner from the business for personal or
family use.
Electronic Fund Is used to move money from one account to another. The transaction is
Transfer (EFT) completed electronically, and the two accounts can be at the same bank or
different banks.
© E-Loné Scheepers 2024 Grade 8 Accounting
