Error of Casting:

An error which is made during making the total of an account e.g we made total more or less instead of actual.

Error of Principle:

Error which is made in the fundamental principles of accounting is called error of principle. e.g we bought machinery and we record in purchase account instead of machinery account.

Error of Trial Balance:

An error which is made during the preparation of trial balance is called error of trial balance.

Error of Book Keeping:

An error which is made in the original books of account or in original documents is called error of book keeping.

Error of Posting:

If amount is posted on the wrong side of same account is known as error of posting e.g we sold goods to Aslam and we post the sale amount on the credit side of Aslam account instead of Debit side.

Error of Commission:

If a transaction is recorded in wrong account instead of right account of same class, is known as error of commission e.g we sold goods to Naveed and record in Zahid account.

Error of Omission:

If a transaction totally omitted to record in the original books of accounts is called error of omission e.g if we purchase some merchandise and we omit to record this transaction in the books it will be called an error of omission.

External Liabilities:

The amount that is payable by the business to the outsiders is called external liabilities.

Endorsement of the Cheque:

If the holder of cheque transfers the cheque to creditor against settlement of his debts the process is called endorsement of the cheque.

Endorsement of Bill:

If one bill is transferred from one person to another person for the settlement of loan or debts is called endorsement of bill.

Entry:

Recording of a transaction in a proper way in the accounting books of an organization.

External Transaction:

A transaction which is taken place with individual or corporation outside the organization.

Equity:

This is the sum of two components
1) Liabilites
2) Owner's Equity

We may write this in equation also as                          Equity = Liabilities + Owner's Equity

Expenses:

The cost which is spend on goods or services for the object of to earn revenue e.g Salaries, rent, entertainment, travelling etc.

Depletion:

The decrease in the value of wasting assets in proportionate to the quantum of production e.g quarries, oil well, etc.

Deferred Revenue Expenditures:

Revenue expenditures, the benefits are not confined to one accounting year. They extend to future accounting year or years are known as deferred revenue expenditures.