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1. Asking a property dealer to arrange office premises

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Abandonment-The relinquishment or surrender of rights, interest of property by one person to another, expressly or by implication.

Acceptance-The act by which the drawee of a bill of exchange binds himself to pay the same when due. Writing of the name across the face of the bill constitutes acceptance.

Account- In accounting, it means a ledger sheet showing debit and credit of any asset, liability, income etc., while in business, every customer is sometimes referred to as a separate account.

Accounts Current- Statements of accounts rendered between home firms and foreign firms, between whom there are frequent transactions, showing the daily balance and adding or deducting interest thereon.

The term also denotes financial statement issued by an insurance company to its agents on a monthly basis.

Account Payable- A debt, owing to an enterprise, which arises in the normal course of business dealing and is not supported by negotiable paper.

Act of God-Any act beyond human causes or not subject to human foresight.

Advance Bill-A bill of exchange drawn before shipment of goods.

Ad Valorem-According to value.

Ad Valorem Duty-Duty levied on the value of certain item and can only be altered by a special resolution of the members.

Advice-A sworn statement for declaration in writing before an official authorized to execute such instruments.

After Sight-A term used to indicate that the period for which a bill of exchange is drawn, will not begin until after it has been presented to the drawee.

Agreement-A contract or bargain to do or not to do certain things. It is always desirable to have all the agreements in writing. However, it has often been found that even verbal agreements are equally honoured by the parties concerned.

Allonge-An attachment to a bill of exchange to provide space for further endorsements when the back of the bill itself has been fully policy.

All-Risk Insurance- An insurance against loss or damage caused by all perils expect those especially excluded and mentioned in the policy.

Appeal Bond- A bond required of an appellant to assure payment of costs and damages if the appeal is lost.

Articles of Association- A document that defines the power, rights, duties and authority of the shareholders and the directors of a Limited Company. It is a set of rules for the internal management of the Company.

At the Market- An order to a broker to sell goods, etc. immediately at the best possible price.

Back Bill- A statement of unpaid charges.

Bad Debt- A debt which is no more accepted to be recoverable from the debator.

Balance Sheet- A list of statement showing the details of assets and liabilities of any organisation as on particular date, usually at the close of the financial year.

Bank Acceptance- A draft or bill of exchange drawn upon and accepted by a bank. Also called banker’s acceptance.

Bank Note- A bank note is a legal tender and is a promissory note payable on demand to the bearer.

Bankruptcy- It is a state of insolvency in which the effects of a man unable to pay his debts are taken over by a trustee and distributed for the benefit of all his creditors.

Bill of Entry- A document describing goods before they are landed, which importers give to Customs authorities.

Bill of Exchange- It is an unconditional written order by one party ordering another to pay to some third, on demand or at some future date.

Bill of Lading- A document issued by the carrier to the shipper as a receipt and as a contract governing transportation and delivery of the articles only.

Bond- A sealed document by which a person binds himself, his heirs, executors and administrators to pay a certain sum to another person on or before a specified date.

Bonded Goods- Goods stored in a warehouse by an owner who has furnished a bond to pay duty or taxes due.

Bonded Warehouse- A government building in which bonded goods are stored.

Brand- Trade mark applied on packages, casks and other containers.

Breach of Contract- Breaking the terms of contract by non-performance or doing some such act which is contrary to the terms of the contract.

Broker- An agent who buys and sells on behalf of other people without taking possession of the goods.

Brokerage- It is the remuneration which paid to the broker. It is generally a certain percentage of the amount of deal.

Capital- It is the sum of money employed by a person or a company in a business undertaking. It is also principal of a loan.

Call Loan- Money lent payable on call or demand. Such loans are secured by securities as these can be readily sold if the money is not paid. The limit allowed for payment before selling the securities is twenty-four hours.

Cash Discount- A discount allowed for payment of a debt in advance.

Caveat Emptor- It is a Latin phrase which means ‘let the buyer beware.’ It is used as an opposite of ‘caveat venditor’.

Caveat Venditor- It is a Latin phrase which means ‘let the seller beware.’

Charter Party- The term stands for the contract between the owner of a vessel and the charterer, i.e. the one that takes over the vessel for a certain period of time or for a voyage.

Cheque- It is a bill of exchange drawn on a bank from and payable on demand.

(a) Bearer cheque- A ‘bearer cheque’ is one made payable to payee or bearer.

(b) Order cheque- An ‘order cheque’ is one made payable to payee or order enabling the payee either to deposit it in his account or endorse it to a third party.

(c) Crossed cheque- A ‘crossed cheque’ is one made payable to the account of a payee only and not cashed over the counter.

(d) Post-dated cheque- A ‘post-dated cheque’ is one in which the date inserted is a future one. In other words, it is not encashable on the date of its issue.

(e) State cheque- A ‘stale cheque’ is one that has not been presented for payment within a specified time. In India, any cheque not presented for payment over a period of six months from the date it bears, is a stale cheque.

Circular Note- A letter of credit issued by a bank to clients, enabling the holders to obtain payment at various places abroad.

Closing Price- The price at which the last sale of an organised market is made on a particular day.

Commission- It is the remuneration paid to an agent for carrying through a transaction on introducing business.

Common Carrier- A transportation agency operating under a certificate from the government which requires the carrier to serve all the people.

Common law- Usages and customs which have come to be sanctioned as precedents, but are not reduced to codes.

Company- It is an association of persons combined for purpose of profit, and contributing to a common capital.

Consignment- A form of bailment in which one party sends goods to another party for sale.

Contract- An agreement between two or more parties for a legal purpose and supported by consideration. (Acceptance of agreement)

Cover- Money deposited as security against possible loss.

Cover Note- A document issued by insurer giving temporary insurance cover pending the issue of a formal insurance policy.

Credit- Ability to secure goods or services in the present against the promise to pay for them in the future. In accounting, the credit side of the account is one which receipts are entered.

Credit Bill- A bill of exchange where the debator has arranged in advance for credit with the drawee.

Credit Note- It is a form in which the details of reduction or rebate from an already rendered account are given.

Creditor- One to whom some debt is owed by another.

Current Account- It is an account with a bank which is maintained by a business concern for collecting and paying accounts. No interest is generally allowed on the credit balance of the current account. On the other hand, if the balance of the current accounts are smaller, a charge is generally made by the bank.

Customs Duties- These are the taxes levied by the government on certain imported and exported goods.

Date of Maturity- Date on which a debt owed by a person falls due.

Days of Grace- Extra time allowed by law or custom for making certain payments.

Dead Stock- Inventory of which there is little or no demand.

Dead Weight- The weight of freight-carrying vehicles or vessels without load.

Debenture- A document issued under the seal of the company, usually, charging all or some of a company’s properly in favour of the holder. The rate of interest payable within the time which the amount is to be repaid, is clearly mentioned in the document.

Debit- In accounts, a debit refers to an amount owed.

Debtor- A person/firm/company which owes a certain amount to another person, bank, company etc.

Default- Failure to perform a term of contract at the stipulated time.

Demurrage- A charge made on the goods by railways/ transport companies/shippers etc. for retaining goods beyond a specified period.

Deposit Account- It refers to an account with the bank in which the amount is paid or deposited which is not required for an immediate use. A certain interest is paid on this sum by the bank.

Discount-A reduction on a principal amount.

(a) Cash discount- It is allowed by the manufactures or producers to their dealers. This is generally a certain percentage on the marked or printed price of the product.

(b) Trade discount- It is allowed by the manufactures or producers to their dealers. This is generally a certain percentage on the marked or printed price of the product.

(c) Special discount- It is allowed under special circumstances-generally on the large orders or an orders received during a particular period. In certain cases it is also allowed on shop-soiled stock.

Dishonour- Failure or refusal to make payment on a promissory note or bill of exchange when due.

Dividend- It refers to the interest paid on investment. Profits of a company divisible among its members are also dividends.

Due Bill- A written admission of a debt.

Endorsement- A signature on the back of a bill or exchange of cheque, making it payable to the person who signed it.

Excise Duty- Taxes levied by the government on certain articles manufactured for home consumption.

Executor- A person appointed by a will to see that its provisions are duly carried out.

Express Warranty- A statement of conduct by a seller to a buyer that a specific condition exists in the charter of goods.

External Debt- The debt held by persons outside a country.

Face Value- The value stated on the face of a security or insurance policy. It is the value on maturity or death of the insured.

Factor- A merchant who buys and sells on comission the goods if the bill drawn for those goods is not honoured.

Free on Board (F.O.R)- It means that the sale price covers all charges including delivery of goods, free on board truck, car or vessels at a designated point, either at the origin or the destination of a shipment.

Free on Rail (F.O.R.)- It means that all expenses up to the loading of goods in rail will be borne by the seller.

Fraud- Securing consent to a contract by the misrepresentation made with knowledge or by trick.

Gilt-edged Securities- Stocks and shares which are relatively risk-free.

Goodwill- Value of a firm’s reputation.

Grade Period- Any period beyond the due date granted to a debtor by a creditor.

Gross Profit- Total allocable receipts of a period’s operations less the cost of the goods sold, before allowing for operating expenses and income tax.

Hire-purchase- A system for the purchase of goods, by which they are obtained on hire and each payment is treated as a part-payment of the purchases.

Hypothecation- It is a contract which pledges or creates a lien on collateral to secure a debt, where the debtor keeps possession of the collateral.

Imports- Commodities or servicers purchased from foreign countries.

Import Duty- A tax or tariff on import of goods.

Indemnity- Security against damage or loss.

Indent- An indent is an order for the goods. In Large store house/factories/workshops etc., it is also used as requisition of stores.

Indorser- It refers to one who has put his name or, negotiable paper in order to transfer title (ownership) from himself to another or to guarantee payment.

Inland Bill- A bill of exchange drawn and payable within the country.

Insolvent- One who cannot pay his/her debts.

Inter Alia- Among other things.

Interest- It is an amount paid on a loan or deposit. It is usually calculated at a certain rate per cent per annum.

(a) Simple interest- It is interest calculated only on the principal and the accumlated interest of previous periods.

(b) Compound interest- Interest calculated on the principal and the accumulated interest of previous periods.

Interest Bond- A bond issued in payment of interest on other bonds because of a shortage of cash to pay the interest.

Interim Bond- A temporary certificate which is replaced by a parmanent bond at a later date.

Invalid Bond- When a promissory note is obtained by misrepresentation or under threat or for illegal gratification such as gambling, bribery, etc., it becomes null and void and is termed as an invalid bond.

Invoice- A business form showing the items shipped or sold and charges thereof, sent by the seller at the time of shipment or selling.

I.O.U.- Abbreviation of ‘I owe you’. It is an acknowledgement of a debt.

Jerquer- Customs official who searches ships for dutiable articles. He also checks ships and papers relating to import of goods.

Jettison- The throwing overboard a ship of goods, etc.on account of bad weather or enemy action, etc. The owner whose property is sacrificed, for the preservation of the whole, has a claim upon the owners of the property preserved, who are bound to share his loss with him.

Jury- A body of persons chosen and sworn to hear and pass verdict upon evidence brought forward in a trial, inquest or inquiry.

Legal Tender- Paper and metal money, i.e. coins that a government declares must be accepted as a lawful payment of debts.

Letter of Allotment- A letter informing an applicant that certain shares have been allotted to him or her.

Letter of Credit- A letter from one banker to another authorizing the payment of a specified sum to the person named in the letter on certain specified conditions.

Liablility- Debt or responsibility.

License- It is a permission given to do some act, which, without such permission, would be unlawful.

Lien- A legal right of a person to detain or control property belonging to another until certain charges upon it have been paid or until some pecuniary claim of the former has been satisfied.

Liquidation- The process by which a company is brought to an end (wound up) and its assets and property are redistributed.

List Price- The price shown in the sales list of the seller.

Long Bills- Bills of exchange drawn payable at a period exceeding three days after date of sight.

Long Term Holding- Stocks and shares held as a long term investment.

Manifest- A list of goods on board a ship/aircraft.

Margin- A percentage deposited with a broker to secure him against loss by violent fluctuation of price.

Marked Cheque- It is a cheque marked by the drawer’s banker guaranteeing for its being good for payment.

Market Area- That territory within which the product’s purchase or sale affects its generally prevailing price.

Market Price- The price at which the goods are exchanged in the market from day-to-day or current ruling price in the market.

Market Value- The price at which stocks, bonds, notes or goods sell in a given time.

Maturity Date- The date on which an obligation is due.

Maturity Value- The amount which must be paid on the date an obligation is due.

Memorandum on Association- It is a document which indicates the name, address, objects, powers, the limitation of members’ liability and the share capital of the company. It further defines the limits of the field of operations.

Merchandise- Goods-household or commercial-bought and sold in wholesale and retail.

Middleman- An intermediary trader who buys goods from producers and sells to retailers and cosumers.

Monopoly-Market situation in which one person or a group has such a control of the supply of a commodity as to be able to regulate its price.

Mortgage- A deed transferring property to a creditor as security for the payment of a debt.

Negotiate- To conduct business transactions; to endorse a cheque or bill of exchange, to discount a bill of exchange.

Negotiable Instruments- Documents such as bills, notes, cheques, bonds, etc. that by common usage on transfer by common usage on transfer by delivery from one person to another, convey a legal right to the property therein, free from all claims.

Net- The remainder after all deductions.

Net Profit- Profit after all deductions.

Net sales- The total of all sales after deducting returned sales.

Normal Price- That price which will in the long run make the rate of production and rate of consumption equal.

Notary- A person duly authorised by the government to take oaths, attest writings, etc.

Notarial Protest- The evidence required by law, of the due presentation of a bill for acceptance or payment.

Obligation- Any enforceable debt (business). A duty owed by one person to another (legal).

Octroi- A tax imposed on articles coming inside a city. Revenues from such sources generally go to municipal bodies.

Official Exchange Rate- The ratio which is applied by the monetary authority of one country in exchange of its currency for another country’s currency.

Open Cheque- An uncrossed cheque payable on presentation to “bearer or order” as the case may be.

Open Credit- Credit given by a banker to customers without guarantee or security.

Open Indent- An importer’s purchase order to an exporter, which may be completed with goods from any manufacturer or firm provided the goods meet specifications.

Opening Price- The price at which the first sale on an organised market is made on a particular day.

Open Letter of credit- A letter of credit without special conditions.

Order- Verbal or written instructions for the purchase of goods.

Output- The quantity of goods produced in a given period of time.

Overdraft- A position in a bank account when withdrawals exceed deposits. In this situation a person or account is said to be overdrawn.

Overhead- All expenses expect for those of the cost of raw materials, labour, sales etc.

Owner’s Risk- Railways convey goods at reduced charges at owner’s risk. It means that the Railways are not responsible for any loss or damage expect caused through misconduct of their servants.

Par- A stock or bond selling for exactly the amount expressed upon its face, is said to be at par. When selling at a profit, it is said to be at “above par.” When selling at a loss, it is called “below par.”

Par of Exchange- The value of a country’s money in that of the other, comparing gold with gold and silver with silver.

Par Value- In the case of bonds and stocks, the face value appearing on the certificate is the par value.

Patent- A patent is an exclusive right granted under the Patents Act to the inventor of a new useful technical invention.

Patent Infringement- Unauthorised use, sale, or manufacture of a patented article.

Payee- The person named on a cheque, bill of exchange or other document, who is to receive payment.

Pay in- To deposit money in a bank.

Petty Cash- A cash or fund for small disbursements. It is also termed as petty fund.

Plaintiff- One who brings a suit in a court of law.

Pledge- It is a bailment of personal property by the owner to another as security for a debt.

Policy- In insurance, it is the contract between the insurer and the insured setting forth the various terms and conditions of the contract.

Pool- A combination formed to control the price of merchandise.

Post-dated- It pertains to a cheque or other documents which bears a date subsequent to the date of delivery.

Power of Attorney- A document authorising a person to act legally for another.

Pre-paying- Paying before the date on which payment is due.

Price- The amount of money which expresses exchange value of single until of goods, as 1000 grams, or 1 kilo of tea leaves.

Pro format- Latin for ‘for the sake of form.’ Used to describe in accounting, financial and other statements or conclusions based upon assumed or anticipated facts. A type of specimen.

Pro rata- The term is used to describe proportionate allocation. A method of assigning an amount to a fraction, according to its share of the whole.

Prospectus- Circular containing an outline of an article, commercial enterprise for public favour or comment.

Proviso-Conditional stipulation.

Quantity Discount- A discount allowed on the principle that large quantities involve lower costs.

Quotation- The current published price of any commodity or security. Often two prices are given: (1) the price asked for the sellers; and (2) the price offered by the buyers.

Rate- The charge per unit for goods or services.

Rate War- Cut-throat competition between two or more carriers in an effort to attract freight by cutting rates.

Rebate- Part of payment returned.

Receipt- A written acknowledgement that something has been received.

Refund- To pay back.

Reinsurance- Transfer of a part of risk from one insurer to another.

Remittance- Money sent by one person to another.

Representative- An agent or a salesman.

Return- Income from an investment usually expressed as a percentage of its cost.

Returns-Sold merchandise returned by customers’ to get refund.

Revocable Letter of Credit- A letter of credit which can be cancelled without the consent of the beneficiary.

Sabotage- Deliberate conduct damaging machinery, destroying raw materials, or turning out defective work.

Salvage- Property saved from a fire or a wreck.

Sealed Tender- A tender presented to an officer with seals, to be opened on the day fixed for the purpose.

Second of Exchange- The second copy of a bill of exchange marked “second”.

Secured Creditor- A creditor who has collateral security in the form of personal or real property for a sum due to him.

Shareholder or Stockholder- The owner of shares or stocks, having shares in his/her D-Mat account.

Shipment- Articles put on board the ship for transportation.

Sight Bill- Bill of exchange payable when received and in which no days of grace are allowed.

Sight Draft- A cheque or draft on bank or commercial house which demands payment immediately upon presentation.

Sleeping Partner- A person who has capital in a partnership but takes no part in its commercial activities though he/she has all the benefits and obligations in accordance with the provisions of partnership deed.

Slump- A period of bad trade caused by lack of demand for commodities.

Solvency- The ability to discharge all debts and obligation in full.

Special Agent- An agent whose powers to act for his principal are limited.

Speciality- An article dealt in chiefly or exclusively.

Speculation- Selling of goods or securities in the hope of making a profit from the charge in price.

Spot Price- The price of goods deliverable immediately.

Stakeholders- All those having interests in an organisation, e.g. its shareholders, employees, suppliers, customers, etc.

Stock Exchange- A place where stocks and bonds are purchased and sold through brokers under definite rules and at regular hours.

Syndicate- A group of persons or firms to achieve a common business purpose.

Tariff- Customs duties on merchandise imports. Tarrif gives a price advantage to locally produced goods over similar goods which are imported, and earns revenue for the government.

Tax- A compulsory payment to the government to defray the expenses which it has incurred in performing services for the common benefit.

Tender- An offer to buy or sell.

Terms- Conditions on which an agreement is made or on which a sale is made.

Time Bill- A bill of exchange payable at a future date rather than immediately.

Trade Bill- A bill of exchange drawn by the seller of the goods on the buyer covering payment of the goods.

Trade Discounts- These are the discounts allowed to the middlemen.

Trade Mark- A distinctive device or imprint used by a person or firm to identify his products.

Ultra Vires- Latin for “beyond the powers”. Generally used to describe an act by a corporation or its agent which is beyond its powers to set out in the articles of Incorporation.

Underwriter- Any person, banker, or syndicate that guarantees to furnish a definite sum of money by a definite date to a business or government in return for an issue of bonds or stock.

Unilateral Contract- It is a contract that is binding on any one party to it, such as a loan of money.

Unsecured Creditor- A lender whose loan of debt is not secured by any collateral or mortgage.

Unship- Unload from a ship.

Usance- The customary number of days or months in which foreign bills of exchange are drawn in a certain place.

Vendor- It refers to a legal entity that promotes or exchanges goods or services for money.

Venture- Business enterprise, especially of a speculative nature.

Warrant- A magistrate’s order for the arrest of a person or seizure of goods; or a receipt for goods deposited in a warehouse and a negotiable document entitling the holder to certain money or property.

Wash- A fictitious sale or transaction.

Will- Legal disposition of property on one’s death according to the written instructions of the deceased.

Write- A formal written order issued by a body with administrative or judicial power such as court. Warrants and prerogative are types of write.

A

A-1 first class

@ at the rate of at the rate of

a.a.r. against all risks

abbr. abbreviation

abbrev. abbreviation

abr. abridged

abs. absent

abstr. abstract

a/c. account

A/C Account

ac. account

acct. account

A.D. Acknowledgement due

a.d. after date

anno domini: in the year of our Lord

Ad lib. Ad libitum (at pleasure)

Ad lib. ad libitum (at pleasure)

admin. administration

ad.val. ad valorem (according to value)

ad. advertisement

advt. advertisement

Advt. Advertisement

advert. advertisement

aftn. afternoon

agcy. agency

agt. agent

Agt. Agent

alt. alternate

alt. altitude

alt. altogether

A.M. Ante Meridiem (morning)

(before noon)

a.m. Ante Meridiem (morning)

(before noon)

amt. amount

a/o account of

appro. approval

Arith. Arithmetic

art. article

A/S. account sales or sales account

assn. association

assoc. association

asst. assistant

asst. assorted

Aug. August

aux. auxiliary

Ave. Avenue

B

bal. balance

b.b. bill book or bank book

bd. board

bd. bound

B.C. Before Christ

B/E Bill of Exchange

bdl. bundle

bdth. breadth

b.f. brought foward

bk. bank

bk. book

bk. bookkeeping

B/L. Bill of Lading

bl. Bill of lading

bl. barrel

bl. bale

bldg. building

blk. bulk

blk. blank

bot. bottle

B.P. Bill Payable

bp. bill of parcel

b.p. boiling point

b.p. below proof

B.R. Bills Receivable

B/R. Bills Receivable

Br. Brother, Branch

brl. barrel

bro. brother

B.S. Bill of Sale

B/S Bill of Sale

b.s. balance sheet

bt. bought

bght. bought

bu. bushel(s)

bu. bureau

bx. box

C

C Centigrade/cents

C.A. Chartered Accountant

Cost Accountant

c.a. circa (about)

cap. capital

cap. capitalise

Capt. Caption

c.c. carbon copy

cc. cubic centimetre(s)

cent. a hundredth

cf. refer

cge.pd. carrige paid

C.H. Custom House

chem. chemical

chron. chronological

c.i.f. cost, insurance and freight

C/L. Carload

c.l. cart-load

cml. commercial

Co. Company

co. company

c.o. care of

C/o. care of

C.O.D. Cash on Delivery

c.o.d. cash of delivery

Col. Colonel, column

comp. compound

comm. commission, communication

consgt. consignment

cont. continued

contr. contract

Co-op. Co-operative (society)

Corpn. Corporation

corr. correspondence

c.p. candle power

Cp. Compare

cpd. compound

Cr. Creditor

cr. credit

C/R. Company’s Risk

c/s. cases

ct. carat

cu. cubic

cum.div. with dividend

currt. current

current present month of year

C.W.O. Cases with order

Cwt. hundred weight

D

D. In Roman numerals, 500

d. date

d/a. document against acceptance

d/d. days after date

d/d delivered

Dec. December

deg. degree(s)

del. deliver

del. delegate

dely. delivery

dept. department

deptt. department

dis. discount

disc. discount

disct. discount

Ditto The same

div. dividend

div. division

divd. dividend

dk. dock

dk. dark

dks. docks

D/n Debit note

do. ditto (the same)

D/o delivery order

doz. dozen

d/p. documents against payment

dpth. depth

Dr. Debtor

dr. debtor/debit

dr. dram

dr. drawer

d.s. days after sight

d/s. days after sight

dup. duplicate

dy. delivery

dz. dozen

E

ea. each

ed. edited

ed. edition

ed. editor

EE. Errors Expected

e.g. exempli gratia (for example)

encl. enclosure

encls. enclosures

E.& O.E. errors and omissions expected

e.o.m. end of month

eq. equal

equit. equivalent

Esq. Esquire

est. establish

est. estimate

et.al. et alibate (and elsewhere)

etc. etcetera (and so forth and the rest)

et. seq. et sequents (and the following)

ex. from

ex. example

ex. exchange

exc. exchange

excl. exclusive

exec. executive

ext. extention

ex.div. ex dividend (without dividend)

F

F. Friday, Fahrenheit

f.a.a. free of all average

fac. facsimile

facs. facsimile

fah. fahrenheit

f.a.q. fair average quality

f.a.s. free alongside ship

f.d. free docks (goods to be delivered)

Feb. February

fig. figure

f.o. folio

f.o.b. free on board

F.O.B. Free on Board

fol. folio

folg. following

F.O.R Free on Rail

f.p. foot-pound

f.p.a. free particulars average (marine insurance)

fr. franc

Free case no change for case

Fri. Friday

G

gal. gallon

gall. gallon

g.c.f. greatest common factor

gds. goods

gen. general

gm. gramme

gns. guneas

Gr. Grains

Gr. Gross

gr.wt. gross weight

gro.wt. gross weight

grs. gross

g.t.c. good till cancelled

guar. guaranteed

g.v. grande votesse

(Fast goods train)

H

hhd. hogshead

Hon. Honourable

hon. honorary

H.P. Horse Power

h.p. horse power

H.P. Hire Purchase

h.p.n. horse power nominal

hr. hour

hrs. hours

ht. heat

ht. height

I

ib. ibidem (in the same place)

ibid. ibidem (in the same place)

i.c. in charge

i.d. idem (the same)

i.e. idest (that is)

I.H.P indicated Horse Power

imp. important

imp. imported

in. inch

inc. incorporated

inc. Incorporated

inc. including

inc. incomplete

Incorp. Incorporated

in ex. in extenso

inf. information

inf. infra (below)

ins. insurance

inst. instant (present month)

int. interest

inv. invoice

I/O. Inspecting Order

I.O.U. Inspecting Order

ital italics

J

Jan. January

jn. Junction

J.P. Justice of the peace

Jr. Junior

Jun. June

Jul. July

Jt. Joint

J.S. Joint Secretary

K

k. kilo

k.g. kilogramme

kild. kilderkin

k.m. kilometre

k.o. knock out

kt. carat

kw. kilowatt(s)

L

L. In Roman numerals, 50

L or l. A pound Sterling

Lb. A pound weight

L/C. Letter of Credit

Lib. Library

Lim. Limited

Lit. Litre

lgth. length

log. logarithm

Ltd. Limited

ltd. limited

lugg. rail goods trair

M

m. minute

m. month

m. metre

maj. major

Mar. Mrch

max. maximum

m/d. months after date

mdse. merchandise

med. medium

mem. member

memo. memorandum

Messrs. Messieurs

mfg. manufacturing

mfr. manufcture

m.g. milligram

Mgr. Manager

mks. marks

min. minimum

min. minute

misc. miscellaneous

M.M. Messieurs

m.m. millimetre

M.O. Money Order

m.o. money order

Mon. Monday

m.p.h. mile per hour

Mr Mister

M/s. Messrs

Mrs Mistress

Ms Manuscript

MS. Manuscript

ms. manuscript

m/s. months after sight

mths. months

mos months

mts. minutes

Mtge. mortgage

N

n. north/nitrogen

n.a. not available/(mark well)

N.B. Nota Bene (mark well)

neg. negative/negligible

nem.con. no one objecting

No. number

no. number

nom.cap nominal capital

Nov. November

nr. near

n.s. not specified

O

O. Order

o. order

o.a. on account (of)

O/a. On account (of)

o.c. overcharge, office copy

o.d. on demand

O.I.G.S. On India Government Service

op.cit. opere citato (in the work or book cited)

o.s. out of stock

% percent

oz. ounce

P

p. per or through

p.a. per annum

p.c. percent

pcl. parcel

pd. paid

per ann.

per pro.

pkg. packing

P&L Profit and Loss

p.m. post meridiem (after noon)

P.N. Promissory Note

P.O. Postal Order/Post Office

pp. pages

P.P. Parcel Post/Particular Person

(Telephone)

pro. for

pro. tem. tem. for the next time being

Prox. Proximo, Next month

P.T.O. Please Turn Over

P.V. Petit Vitesse (Ordinary goods train)

Q

q.v. quod vide (which see)

qual. quality

qy. query

R

Re. Refer or referring to

re. refer or referring to

recd. received

recpt. receipt

regd. registered

refce reference

reg. registered

retd. returned

R.P. reply paid

R.S.V.P. repondez s’il vous plait

(reply, if you please)

S

S. Shilling

S/d. Sight draft

Sec. Secretary

sec. secretary, second

senr. senior

sh. shiling

S.N. Shipping Note

Sq. Square

Sq. ft. Square foot

Sq.yd. Square yard

Sr. Senior

SS. Steamship

S/S. Steamship

Stg. Sterling

Str. Streamer

Subs.cap. subscribed capital

T

T.L.O. total loss only

tgm. telegram

tr. tare (Weight)

U

ult. ultimo (last month)

U.K. United Kingdom

U.S.A. United States of America

U.S.S.R. United of Soviet Socialist Republics

V

via. By way of

V.P.L. Value Payable Ltter

V.P.P. Value Payable Post

viz. namely

W

wt. weight

w.e.f. with effect from

Y

yd. yard

yr. year

_____________

Stationery: Always use quality paper. It should be plain and not ruled. The two most acceptable qualities of paper are Bond and Airmail. The normal size of a letterhead is 11 inches by 8 1/2 inches and 8 1/2 inches by 5 inches.

Colour of stationery: White paper is the best. However, some business concerns prefer to use light shades of grey, brown and blue. It may, however, be noted that bright colours like yellow, orange, green, red, etc. are never desirable.

In some large concerns , different colours of stationery are used for different departments. This, of course, is a good idea as it helps to discriminate correspondence of different departments. Also, the different copies like the first copy or the second copy, etc., are sometimes made in different colours.

Typing: There is no second opinion that all business letters must be typewritten. Use of two coloured ribbons (red and black or blue) for accounts, statements or similar work is recommended. Proper spacing is a further necessity and it must be carefully looked after.

Envelopes: Needless to say that an envelope is the most important part of business stationery, as your client will first glance at it. The quality of the envelope should correspond to the quality of the letterhead.

A business letter is generally divided into the following seven parts:-

1. The heading
2. The inside address
3. The subject
4. The salutation
5. The body of letter
6. The complimentary
7. The signature

1.Heading: It indicates when and where the letter was written and thus it comprises the postal address of the writer and the date on which the letter was written. The address may appear either in the centre or on the left-hand side of the letter in case where plain paper is being used. In case a letterhead is used by the sender which has address of sender pre-printed on it, then we need not write the sender’s address again. In such a case, we give only receiver’s address just below the date on left hand side of the letterhead. The date, however, generally appears on the left-hand side.

Note: The most preferred style lately is the left aligned style, i.e. A in the following example. We never write the word ‘date’, we give the date straightaway. There are two formats of writing date: 1. British format, wherein we give day, month and year; and 2. American format, wherein we give month, day and year. It depends on preference and requirement of sender which date format he/she follows.

Proper spacing between the name of the firm and its address and between the address and between the address and the date is of paramount importance. A few examples of a heading are given below:

A. Johnson Trading Company

18-Prince of Wales Street

London 3132 1A

UK

15th November, 2022

B. Johnson Trading Company

18-Prince of Wales Street

London 3132 1A

UK

15th November, 2022

C. Johnson Trading Company

18-Prince of wales Street

London 3132 1A

UK

15th November, 2022

Note: It is necessary to write “London (UK)”, when the letter is communicated between UK and another country.

2. The inside address: This comprises name and address of a person or the firm to whom the letter is written and appears of the left-hand side of the letter. This corresponds to the address on the envelope with the difference that in some cases, the number and the name of the street is omitted. This, however, is unwise and a complete address is always desirable, as otherwise, it may become difficult to locate a reference with the copy of the letter. Proper spacing and punctuation are necessary here as well.

The word Messrs is generally prefixed to a partnership firm or “& Co.”

EXAMPLE

Messrs Kepler Bros.

Boston (USA)

The above address on the letter is not sufficient. The better way to write the address

is:

Messrs Kelper Bros.

12 West Side Street

Boston 313 (USA)

3. The subject: It highlights the purpose of the letter, to the recipient at a quick glance. It should come below receiver’s address and can come above or below the salutation. Though it is not desirable to write one.

EXAMPLE

Re: Payment pending

Sub: Part-payment received

Ref: Account no. 26805/T

4. The salutation: This appears below the name and the address of the recipient (to whom the letter is written) or below the subject (in case subject is written after recipient’s address).

The various words used as salutations are:-Sir, Dear Sir, Sirs, Madam, Gentlemen, Dear Mr____, Dear Miss____, Dear Mrs____, Dear Ms____.

Sir: This has become very formal now-a-days and is not generally used expect in government correspondence.

Dear Sir: This is by far the most accepted form of salutation. However, this is used only when the relationship between the correspondents already exists.

Dear Sirs: This type of salutation is used in case of letters addressed to companies or partnership firms where the word Messrs is generally used and the letter is addressed to a firm and not to the manager or any other person.

Dear Sirs: This type of salutation is used in case of letters addressed to companies or partnership firms where the word Messrs is generally used and the letter is addressed to a firm and not to the manager or any other person.

Dear Miss, Dear Mrs, Dear Mr, Dear Ms: These are used only where the writer knows the recipient well and wants to give a personal (friendly) touch rather than being formal as usual.

5. The body of the letter: It is that portion of the letter which contains the message or the information which the writer wants to communicate.

The body of the letter should be divided into different paragraphs. Each subject should be dealt within a separate paragraph.

The first paragraph should introduce the subject-matter of the letter and where it is a reply, the reference number and date should be clearly mentioned. In the subsequent paragraphs, different topics may be discussed.

6. The complimentary close: This should always agree with salutation. The most common forms of complimentary close are:

1. Yours faithfully
2. Yours truly
3. Yours very truly
4. Yours respectfully
5. Yours sincerely
6. Yours obediently

Examples of suitable complimentary close to the salutations used are:-

Sir/Dear Sir Yours faithfully

or

Yours truly

Dear Madam Yours faithfully

or

Yours truly

Gentlemen/Dear Sirs Yours faithfully

or

Yours truly

My dear Sir Yours very truly

My dear Sirs Yours very truly

My dear Madam Yours very truly

Dear Mr Yours sincerely

Dear Miss Yours sincerely

Dear Mrs Yours sincerely

7. The signature: The complimentary close should be followed by the signature and name of the writer. In some cases, the name of the firm or the company is also mentioned after the name of the sender. Designation of the writer may also be mentioned whenever possible.

In case when the company’s letterhead is used, there is no need to write the firm’s or company name after the name of the sender.

The success of any modern business, to a large extent, depends on the use of business letters. Someone has rightly said: “A letter in business is what medicine is to a patient.” Good Letters are little ambassadors that traverse every nook and corner of the present day commercial world, They constitute the biggest source of the active liaison that is necessary concomitant for procuring business.

In the words of Mr. Herbert N. Casson: ” A good letter is a master key that opens locked doors.” It opens markets. It opens the way for your goods or services. It reflects the real character of your firm.

What does a good business letter do?

1. It sells goods.
2. It creates new customers.
3. It brings back the lost customers.
4. It brings good traveling sales representatives,
5. It gives an incentive to the dealers.
6. It instils confidence into the suppliers.
7. It brings back confidence in the buyers.
8. It collects bad debts.
9. It settles disputes.
10. It brings more finance.
11. It opens new markets.
12. It brings more profits.
13. It builds the business and the nation.

To,

The Editor,

Dear Sir,

It is the age of bureaucracy. Will you kindly throw some light on the fruits of bureaucracy?

Yours faithfully.