By Gill Myers StudentsKey accountancy terminology: A bitesize glossary14 Aug 2020 This bitesize glossary gives a summary of words that you may encounter when maintaining the accounts of sole traders and partnerships, using an accounting system that has been created by software. It is not definitive and has a few useful extras, as its purpose is to acknowledge the range of terminology you are likely to come across and equipped you with the knowledge and skills to recognise groups of terms and to use them interchangeably. Key term Also known asReferred to in accounting software asGeneral ledger Main or nominal ledger Chart of accounts / NominalIncome Revenue Revenue from sales revenue Turnover or sales Expenses Overhead, direct cost/ cost of sales or cost of goods soldDepreciation charge(s) Depreciation Diminishing balance depreciation Reducing balance depreciation Carrying amount Net book value Current assets Inventories Stock Cash and cash equivalents Cash at bank and in hand Current liabilities VAT Sales taxNon-current assets Fixed assets Non-current liabilities Long-term liabilities Equity Capital Retained earnings Profit Profit from operations Operating profit Profit/loss for the year/period Net profit/loss Drawings Sales ledger Receivables ledger CustomersSales ledger control accou-nt (SLCA) Trade receivables account / Accountreceivable /Trade debtors Other receivables Prepayments Purchases ledger Payables ledger SuppliersPurchases ledger control account (PLCA) Trade payables account / Accounts payable Trade creditors VendorsOther payables Accruals Subsidiary accounts Memorandum accounts Sales invoice Invoice Purchase invoice Invoice BillFinancial statements Financial accounts Statement of profit or loss (SoPL) Income statement Statement of financial position Balance sheet Furher reading:Good communication skills: the key to your dream role?Earn as you learn: 10 top tips to becoming a successful apprenticeThere’s no better time to pass your Synoptic: Top tips for success Gill Myers is a self-employed accounts consultant. She has taught AAT qualifications since 2005 and written numerous articles and e-learning resources.