Lakh

Definition

Lakh is a unit in the South Asian numbering system which denotes one hundred thousand (100,000; 10^5). This unit is often employed in financial contexts to represent substantial sums of money. In this system, one crore is equivalent to ten million (10,000,000 or 10^7) and one hundred lakh make up one crore.

Example: Twenty lakh Indian rupees (INR 2,000,000) would be verbally expressed and often written as 20,00,000 INR.

Examples

Real Estate: A house might be valued at 50 lakh INR, which translates to 5,000,000 INR.
Salary: An executive’s annual salary might be 12 lakh INR, which corresponds to 1,200,000 INR.
Budget: A school might have an annual budget of 10 lakh INR, meaning the budget is 1,000,000 INR.

Frequently Asked Questions (FAQs)

Q: How is the term ’lakh’ different from ‘million’? A: ‘Lakh’ is a part of the South Asian numbering system and stands for 100,000, whereas ‘million’ in the international system signifies 1,000,000.

Q: How do you write 4.5 million in terms of lakh? A: 4.5 million is equivalent to 45 lakh (4,500,000).

Q: How is ’lakh’ typically written using separators? A: In the South Asian system, separators are used to indicate the number of lakh rather than millions. For example, 45 lakh would be written as 45,00,000.

Q: What is the equivalent of one crore in terms of lakh? A: One crore is equivalent to 100 lakh (10,000,000).

Q: Can the term ’lakh’ be used in other contexts apart from finance? A: Yes, ’lakh’ can also be used to denote quantities in areas like population, inventory, etc.

Crore: A unit in the South Asian numbering system equal to ten million (10,000,000 or 10^7).
Million: A unit in the international numbering system equivalent to 1,000,000.
Indian Numbering System: A numerical system used in the Indian subcontinent which includes terms like ’lakh’, ‘crore’, and ‘ara’.

Online References

Suggested Books for Further Studies

“India Unbound: From Independence to the Global Information Age” by Gurcharan Das
“Accounting for Dummies” by John A. Tracy
“The Essentials of Finance and Accounting for Nonfinancial Managers” by Edward Fields

Accounting Basics: “Lakh” Fundamentals Quiz

### What is the numerical value of one lakh? - [ ] 1,000 - [ ] 10,000 - [ ] 50,000 - [x] 100,000 > **Explanation:** One lakh is equivalent to 100,000 in the South Asian numbering system. ### How many lakh make up one crore? - [ ] 10 - [ ] 50 - [ ] 70 - [x] 100 > **Explanation:** One crore is equal to 100 lakh (10,000,000 or 10^7). ### How would you write 7 lakh in the international numbering system? - [ ] 70,000 - [ ] 700,000 - [x] 700,000 - [ ] 7,000,000 > **Explanation:** 7 lakh in the South Asian system is equivalent to 700,000 in the international system. ### Which term in the South Asian numbering system signifies 10,000,000? - [ ] Lakh - [x] Crore - [ ] Million - [ ] Thousand > **Explanation:** In the South Asian numbering system, 'crore' stands for 10,000,000. ### How would you write 45,00,000 in the international numbering format? - [ ] 4.5 million - [x] 4,500,000 - [ ] 45 million - [ ] 450,000 > **Explanation:** 45,00,000 (South Asian system) converts to 4,500,000 in the international system. ### What is the primary use of the term 'lakh'? - [ ] To describe small quantities - [ ] To denote mass - [x] To indicate large sums of money or quantities - [ ] To measure weight > **Explanation:** The term 'lakh' is primarily used to denote large sums of money or quantities. ### In which regions is the unit 'lakh' predominantly used? - [ ] North America - [x] Indian Subcontinent - [ ] Europe - [ ] Australia > **Explanation:** The unit 'lakh' is predominantly used in the Indian subcontinent. ### What does 25 lakh translate to in the international numbering system? - [ ] 250,000 - [ ] 2,500,000 - [x] 2,500,000 - [ ] 25,000 > **Explanation:** 25 lakh in the South Asian numbering system is equivalent to 2,500,000 in the international system. ### If a company has a budget of 15 lakh, how much is that in the international system? - [ ] 15,000 - [ ] 150,000 - [ ] 1,500,000 - [x] 1,500,000 > **Explanation:** 15 lakh in the South Asian system converts to 1,500,000 in the international system. ### What is the term used to denote 100,000 in the South Asian numbering system? - [x] Lakh - [ ] Crore - [ ] Million - [ ] Thousand > **Explanation:** The term 'lakh' is used to denote 100,000 in the South Asian numbering system.

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