account, purchase account, party account, expenses account, salary account, rent account etc. etc. As and when I require, I create a reasonable accounting head. Generally account heads are classified under two categories as Capital Nature, Revenue Nature." His definition made me to sweat Just below my throat and flowed through my chest. With a shaky voice, I asked him to give examples of the transactions on capital nature and revenue nature.
Any transactions which have been done for the purpose of day to day routine of the business and have no life after the financial year can be classified as revenue nature and all other transactions can be classified as capital nature. He did not embarrass me and continued that buying goods for sale, paying salary to his workers, receipts from sale of goods etc. are ground under revenue nature and if the transactions pertaining to acquiring land, building, machinery, bank accounts which has life more than a year and for the development I improvisation of business may be classified as capital nature. I am confused about his definition and insisted to narrate about the transactions. He said, "Generally, any