Principal
Principal refers to the original amount of money borrowed in a loan or invested in a financial instrument, excluding interest. In accounting records, loan repayments are typically divided between principal and interest components. Tracking principal accurately ensures proper liability reporting and helps businesses monitor outstanding debt obligations over time.
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Par Value
Par value is the nominal or face value assigned to a company’s shares when issued. It has little relation to…
Purchase Returns
Purchase returns arise when a company sends defective or unsatisfactory goods back to a supplier after purchase. These transactions reduce…
Public Offering
A public offering occurs when a company issues shares or securities to the general public to raise capital. The most…
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