1. Final accounts – Key Words

2. Debtors – D for deadly
People who owe us money

3. Creditors – C for Crap
People we owe money

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

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

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

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

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

9. 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

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

11. 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

12. 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