We will see a lot of entity word in accounting.
Entity means nothing.
Business is called entity.
Call it business, call it entity, call it business entity,
call it trade, call it business, all mean the same.
It is an economic unit which carries out various economic
activities and is established in accordance with the law
enforcement.
It includes proprietorship, partnership firm, corporate,
companies, etc.
Entity means business where such activities are carried out
to earn profit.
What does entry mean?
It is a transaction or an event which is recorded in the
books of account.
As soon as there is a transaction, when we record it in the
journal, it is called entry.
Recording a transaction is called an entry.
Insolvent, it is the state of a person, entity where he is
unable to pay its debts.
Hindi meaning of insolvent is Diwali.
Diwali means now he cannot pay his debts.
That person, that entity, is unable to pay his debts.
To pay his debts, it is called insolvent.
Proprietor, a person who owns a business and contributes
capital to the business to earn profit is called proprietor.
A person who gives birth to a business, a person who
invests in a business, is called a proprietor.
For example, he started a business, he invested 5 lakh
rupees, he is called a proprietor.
In the case of a corporate, there is also a promoter word.
Children are a little confused between proprietor and
promoter.
Promoter means the idea of giving birth to a company, which
came to the mind of the person who thought about starting a
company, that is called a promoter in case of companies i.e.
So proprietor is different, promoter is different.
Rebate, it is a reduction in the price of the goods after
the goods have been sold and is offered for a reason other
than that which may have been for allowing trade discount
say bad quality product delivered it is offered and allowed
on sales completed in the past.
Rebate means discount means if we get a discount then it is
a discount and it is called a rebate.
Discount and rebate are different.
Like I bought a mobile for 30,000 rupees, there was an
offer on it that you have a 10% off on it that was a
discount that was a discount but if you are delivering a
bad quality product to someone that product is not
completely right it is a little damaged then you are not
giving it for 30,000 you are giving it at half price for
15,000 you are saying that there is a little dent in its
screen everything will work as it is the screen is a little
cracked it cannot be repaired, it cannot be changed
still it will work so the customer can also be ready to buy
it so if in 15,000 the product is being dropped from 15,000
it is called a rebate that product is not dropped as a
discount that product is not cheap in the name of discount
its quality is bad so we call it a rebate when the quality
is bad and the value is dropped it is called a rebate it is
very simple insolvent means solvent insolvent means Diwali
solvent means the one who can repay his money the one who
has no problem in repaying
that is solvent the one who has money to repay his loan
that is solvent the one who does not have money to repay
his loan that is insolvent so friends we saw the meaning of
proprietor the meaning of rebate, solvent, entity, entry
and insolvent thank you