Financial accounting types of accounts

1. Course : BCA
Year: 1st year
Session :2017-2018
Section : A
Presented By : Rahul kumar
Presented To: Ms . Neelam Tripathi Mam

2. Financial
Accounting


3.  Accounting is defined as the art of Recording,
Classifying and Summarizing transactions in
monetary terms (in Money terms) for the
preparation of Financial Statements .

4. Loss and Expenses a/c
Real Personal a/c Profit and Income a/c
Artificial personal a/c Tangible Real a/c
 Intangible Real a/c
accounts
Personal
Account
Real
Account
Nominal
Account
Transaction
related to person
Transaction Related to
property.
Transaction related to
income /expenses .

5. 1. Personal Accounts: These accounts are related to individuals, firms, companies,
etc.
* Real Name a/c  Shia a/c, Ram a/c or any other real name of person.
* ArtificialNamea/c  shyam &son’s a/c, Punjab bank’s a/c or any other account of
companies ,firms, societies.
Golden rule for personal accounts
Example:
Paid Unreal Pvt Ltd. 24,000 by check.
Accounts Involved Debit/Credit Rule Applied
Unreal Pvt Ltd. A/C Debit
Artificial Personal –
Dr. the receiver
To Bank A/C Credit
Artificial Personal – Cr. the
giver
Debit the receiver
Credit the giver

6. 2.RealAccounts:All assets of a firm, which are tangible or intangible,
fall under the category “Real Accounts“.
 Tangible real accounts :are related to things that can be touched and felt
physically. Few examples of tangible real accounts are building, machinery, stock,
land, etc.
 Intangible real accounts : are related to things that can’t be touched and felt
physically. Few examples of such real accounts are goodwill, patents, trademarks,
etc.
Golden rule or real accounts
Example:
* Purchased furniture for 1,50,000 in cash
Debit what comes in
Credit what goes out
Accounts Involved Debit/Credit Rule Applied
Furniture A/C Debit Real A/C – Dr. what comes in
To Cash A/C Credit Real A/C – Cr. what goes out

7. 3.NominalAccounts :
Accounts which are related to expenses, losses, incomes or gains
are called Nominal accounts. E.g. wages A/C, Salary A/C, Sales
A/C, Commission received A/C, etc.
Golden rule for nominal accounts
Example:
* Purchased good for 15,000 in cash
Debit all expenses & losses
Credit all incomes & gains
Accounts Involved Debit/Credit Rule Applied
Purchase A/C Debit
Nominal A/C –
Dr. all expenses
To Cash A/C Credit
Real A/C – Cr. what goes
out

8. NATURE OF TRANSACTION INCREASES DECREASES
ASSETS DEBIT CREDIT
LIABILITY CREDIT DEBIT
REVENUE CREDIT DEBIT
EXPENSES DEBIT CREDIT
PROFIT CREDIT DEBIT
LOSSES DEBIT CREDIT

9. Thank you