ACCOUNTING TERMS:BALANCE SHEET,ASSET,LIABILITIES,CAPITAL,CREDIT,DEBIT

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2. BALANCE SHEET: A balance sheet is a statement of the total assets and liabilities of an organization at a particular date – usually the last date of the accounting period.
 

1. A statement of fixed assets, current assets and the liabilities (something referred to as “Net Assets)
2. A statement showing how the net assets have been financed
The Company Act requires the balance sheet to be included in the published financial accounts of all limited companies. In reality, all other organizations that need to prepare accounting information for external users (e.g. charities, clubs and partnerships) will also product a balance sheet since it is an important statement of the financial affairs of the organization.

ASSET: An asset is any right or thing that is owned by a business. Assets include land, buildings, equipment and anything else that can be given a value in money terms for the purpose of financial reporting.

LIABILITIES: To acquire its assets, a business may have to obtain money from various sources in addition to its owners (shareholders) or from retained profits. The various amounts of money owned by a business are called liabilities.
To provide additional information to the user, assets and liabilities are usually classified in the balance sheet as:
Current: those due to be repaid or converted into cash within 12 months of the balance sheet date
Long-term: those due to be repaid or converted into cash more than 12 months after the balance sheet date
Fixed Assets: A fixed assets is an asset which is intended to be of the permanent nature and which is used by the business to provide the capability to conduct the trade.

CAPITAL: As well as borrowing from banks and other sources, all companies receive finance from their owners. This money is generally available for the life of the business and is normally only repaid when the company is “wound up”. To distinguish between the liabilities owed to the third parties and to the business owners, the latter is referred to as “capital” or “equity capital” of the company.

CREDIT: An accounting entry that either decreases assets or increases liabilities and equity on the company's balance sheet. On the company's income statement,  a credit will increase the company's accounts payable (a liability).
The amount of money available to be borrowed by an individual or a company is referred to as credit because it must be paid back to the lender at some point in the future. For example, when you make a purchase at your local mall with your VISA card it is considered a form of credit because you are buying goods with the understanding that you'll need to pay for them later.

DEBIT: An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in your bank account. A debit on an accounting entry will have opposite effects on the balance depending on whether it is done to assets or liabilities, with a debit to assets indicating an increase and vice versa for liabilities.
In fundamental accounting, debits are balanced by credits, which operate in the exact opposite direction. When a debit is made to one account of a financial statement, a corresponding credit must occur on an opposing account. This is the fundamental law of bookkeeping accounting.