Page 107 - Ebook IC S01

Survey And Loss Assessment IC-S01

iii) To determine exactly the relation with outsiders. (a examination of creditors

and debtors)

Double Entry Bookkeeping: The surveyor should aquaint himself with the basic

terminologies used in accountancy/bookkeeping . The basic terms which he would

come across often are defined as follows :-

Debit and Credit : In Book-Keeping, the receiver of any benefit is termed it debtor

and is debited. whereas the giver of any benefit is termed as creditor and is credited.

Debtor: A person who owes something is called a Debtor

Creditor : A person to whom something is owed is called a Creditor. Thus if A owes B

Rs.10.00 A is B's Debtor and B is A's Creditor.

Assets : Anything of value owned by business, Articles owned (or claims on others)

such as furniture. cash, stock of goods,money owed by debtors etc.

Liabilities : Amounts owed by the business, and all claims against the business

The Important books of prime and final entry maintained under Double entry

system are as follows

 Sales Day Books

 Purchase Day Books

 Sales Return Book

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