Hi Renjith,
Document link mentioned by Dimas is best source for understadning the language part from functional prospective
I would like to add one more point here from my past experience
There are some master data objects which do not give pop-up for TR creation once you maintain the multi-lingual text for it. In such case,
1) you have to go to SLXT transaction
2) enter your USER ID in processor field.
3) in Subscreen are of transport request, select radio button of " transport copies".
4) Execute.
This will generate a TR which you can move forward.
Regards,
Amol