Explain the following terms of Accounting: (a) Expenses (b) Expenditure (c) Debtors (d) Creditors (e) Voucher.

(a) Expenses – Expenses are the costs incurred by a business in the process of earning revenues during a particular period. E.g. – Rent, Wages, Depreciation etc.

(b) Expenditure – Expenditure is the amount spent or liability incurred for acquiring assets, goods or services. It may be of two types – Capital Expenditure and Revenue Expenditure.

(c) Debtors – Debtors are the persons or firms to whom goods or services have been sold on credit and payment has not been received.

(d) Creditors – Creditors are the persons or firms from whom the goods or services have been purchased on credit and payment has not been made.

(e) Voucher – Voucher is a documentary proof in support of a business transaction. E.g. – Invoice for credit purchase, receipt for payment etc.