What is a Bill or Invoice?
A bill (or invoice) is a document that lists items purchased, their prices, quantities, and the total amount due. It is issued by a seller to a buyer.
Components of a Bill:
- Date of purchase
- Item description and quantity
- Rate (price per unit)
- Amount (quantity × rate)
- Subtotal (sum of all amounts)
- Taxes (GST, sales tax, etc.)
- Total amount (subtotal + taxes)
What is Banking?
Banking involves keeping money safe in a bank account, earning interest, and making payments. Common account types:
- Savings Account: For daily transactions; earns low interest
- Current Account: For businesses with many transactions; no interest
- Fixed Deposit (FD): Lump sum for fixed period; higher interest
Key Banking Terms:
| Term | Meaning |
|---|---|
| Principal (P) | Amount deposited or borrowed |
| Interest | Extra money earned on deposits |
| Simple Interest (SI) | \(I = \frac{P \times R \times T}{100}\) |
| Amount (A) | Principal + Interest |
| Rate (R) | Percentage of interest per year |
| Time (T) | Duration in years |