The document provides an introduction to accounting and accounting systems, defining key terms like transactions, assets, liabilities, revenues, and expenses. It explains the accounting process of recording, classifying, and summarizing transactions and the basic accounting equation that total assets equal total liabilities plus owner's equity. It also outlines the different types of accounts in accounting - personal, real, and nominal accounts - and the golden rules for debit and credit entries.
This course discusses basic concepts of accounting.
Course Objectives: (i) Help the participants to become intelligent users of accounting information (a) Understand the basic accounting and financial terminology. (b) Understand how events affect firm value (c) Understand how financial transactions are recorded. (d) Make the participants’ comfortable looking through financial statements (ii) Develop the ability in participants’ to use financial statements to assess a company’s performance.
Course Fee: Free of Cost
What you'll learn
• Understand need and importance of Accounting
• Understand Book Keeping, Objectives and Advantages
• Understand Accounting Process, Accounting Cycle,
• Understand Users of Accounting Information
• Understand Branches of Accounting
• Understand Basic Accounting Terms
• Understand Accounting Assumptions, Concepts and Principles
• Understand Rules of Accounting
• Understand Journal, Ledger, Trial Balance and Final Accounts Preparation
In detail view of Everyday session topic covers:
This is a comprehensive course, covering each and every topic in detail. In this course, you will learn Fundamentals of Accounting, step by step covering the following:
This course discusses basic concepts of accounting.
Course Objectives: (i) Help the participants to become intelligent users of accounting information (a) Understand the basic accounting and financial terminology. (b) Understand how events affect firm value (c) Understand how financial transactions are recorded. (d) Make the participants’ comfortable looking through financial statements (ii) Develop the ability in participants’ to use financial statements to assess a company’s performance.
Course Fee: Free of Cost
What you'll learn
• Understand need and importance of Accounting
• Understand Book Keeping, Objectives and Advantages
• Understand Accounting Process, Accounting Cycle,
• Understand Users of Accounting Information
• Understand Branches of Accounting
• Understand Basic Accounting Terms
• Understand Accounting Assumptions, Concepts and Principles
• Understand Rules of Accounting
• Understand Journal, Ledger, Trial Balance and Final Accounts Preparation
In detail view of Everyday session topic covers:
This is a comprehensive course, covering each and every topic in detail. In this course, you will learn Fundamentals of Accounting, step by step covering the following:
Material for PGPSE participants of AFTERSCHOOOL CENTRE FOR SOCIAL ENTREPRENEURSHIP. PGPSE is an entrepreneurship oriented programme, open for all, free for all.
Financial accounting Meaning . This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTSBibek Prajapati
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTS
Fundamentals of Accounting / Introduction of AccountingAfzalur Rahman
1.01 Meaning and Definition of Accounting
1.02 Attributes (Characteristics) of Accounting
1.03 Functions of Accounting
1.04 Accounting Process
1.05 Book Keeping
1.06 Objectives of Accounting
1.07 Advantages of Accounting
1.08 Limitations of Accounting
1.09 Users of Accounting Information
1.10 Systems of Accounting
1.11 Basis of Accounting
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
meaning of accounting
meaning of book-keeping
difference between accounting and book-keeping
meaning of double entry system of book-keeping
accounting equation
accounting principles, concepts and conventions
parties interested in accounting information
accounting cycle
classification/types of accounts
golden rules of accounting
journal, ledger and trial balance indeep understanding with examples . A brife note on their pratical implimentation of journal, ledger and trial balance . their formate with explaination and examples
Material for PGPSE participants of AFTERSCHOOOL CENTRE FOR SOCIAL ENTREPRENEURSHIP. PGPSE is an entrepreneurship oriented programme, open for all, free for all.
Financial accounting Meaning . This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTSBibek Prajapati
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTS
Fundamentals of Accounting / Introduction of AccountingAfzalur Rahman
1.01 Meaning and Definition of Accounting
1.02 Attributes (Characteristics) of Accounting
1.03 Functions of Accounting
1.04 Accounting Process
1.05 Book Keeping
1.06 Objectives of Accounting
1.07 Advantages of Accounting
1.08 Limitations of Accounting
1.09 Users of Accounting Information
1.10 Systems of Accounting
1.11 Basis of Accounting
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
meaning of accounting
meaning of book-keeping
difference between accounting and book-keeping
meaning of double entry system of book-keeping
accounting equation
accounting principles, concepts and conventions
parties interested in accounting information
accounting cycle
classification/types of accounts
golden rules of accounting
journal, ledger and trial balance indeep understanding with examples . A brife note on their pratical implimentation of journal, ledger and trial balance . their formate with explaination and examples
Financial accounting in Masters of Management Studies by Prof. Subhash DalviKartik Mehta
It's all about Financial Accounting:
Financial accountancy is governed by both local and international accounting standards. GAAP (which stands for Generally Accepted Accounting Principles) is the standard framework for guidelines for financial accounting used in any given jurisdiction. It includes the standards, conventions and rules that accountants follow in recording and summarising and in the preparation of financial statements. On the other hand, IFRS (International Financial Reporting Standards) is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards (IASs).
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
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The presentation covers the basics of Cost Accounting.
It gives a birds eye view of the subject of Cost Accounting.
The advantages, limitations, need, scope, classification are covered.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Chapter 1 Introduction to Accounting and Accounting Systems Part - I
1. CHAPTER 1
INTRODUCTION TO ACCOUNTING
& ACCOUNTING SYSTEMS
BY
PROF. SUKU THOMAS SAMUEL
DEPARTMENT OF MANAGEMENT
2. Payment
Goods or Services
WHAT IS A BUSINESS TRANSACTION?
• The economic activity of exchange of goods or services in
exchange for money or moneys worth is called as transaction.
• The entity that carries out transaction is called as a Business.
Buye
r
Selle
r
3. IMPORTANT TERMINOLOGIES
• Proprietor/ Owner: The person who commences a business and
undertakes the risk of carrying out the various business transaction.
• Capital: The initial money contributed the owner or proprietor to start a
business.
• Drawings: The money withdrawn by the owner for personal use.
• Assets: The resources needed by a business to function effectively.
• Liability: The obligations of a business are called as liabilities.
• Sales: The exchange of a product or service for money.
• Purchase: The acquisition of a product or service for money.
4. IMPORTANT TERMINOLOGIES
• Revenue: The income received by a firm from its business activities are
called as revenue.
• Expenses: The cost incurred by a firm due to its business activities is
called as expenses.
• Profit: When revenue is more than a firm's expenses, the condition is
called as profit.
• Loss: When expenses of a firm is more than its income, the condition is
called as loss.
5. ACCOUNTING - DEFINITION
Accounts is the art & science of recording, classifying and
summarizing transactions in a business
• Art – Presentation matters in accounts
• Science – Has definite laws & principles
6. ACCOUNTING - DEFINITION
The art of recording, classifying, and summarizing in a significant
manner and in terms of money, transactions and events which are, in
part at least, of financial character, and interpreting the results
thereof’.
- American Institute of Certified Public Accountants (AICPA)
'The process of identifying, measuring and communicating
economic information to permit informed judgments and
decisions by users of information’.
- American Accounting Association (AAA)
7. ACCOUNTING - OBJECTIVES
Why does a business need accounting?
• Systematic record of transactions.
• Determine profitability based on incomes and expenses.
• Determine financial position in terms of assets and liabilities.
8. ACCOUNTING - HISTORY
• Evolution traced 7,000 yeas back to Mesopotamia civilization.
• In India, Chanakya wrote ‘Arthashasthra’ with details of books of
account.
• Roman Empire developed account audit systems.
• Luca Pacioli, Italian mathematician is considered as Father of
Accounting.
• 18 century, industrial revolution brought needs for accounting
system.
9. ACCOUNTING – BRANCHES OF ACCOUNTING
• Deals with preparing books of Accounts
• Chartered Accountant
Financial Accounting
• Study of cost & methods to reduce them
• Cost Accountant
Cost Accounting
• Analyzing account information to take meaningful business decisions
• Management Accountant
Management Accounting
11. USERS OF ACCOUNTING INFORMATION
• Located within an organization
• Have access to extensive information
• Employees, directors, top management etc.
Internal Users
• Located outside an organization
• Have access to limited information
• E.g. Government, creditors etc.
External Users
12. LIMITATIONS OF ACCOUNTING
• Records only monetary transactions.
• Historical in nature.
• No global practices or policies in place.
• Limited scope for future assessments.
• Requires a qualified professional.
13. ACCOUNTING SYSTEMS
Single Entry System Double Entry System
Considers only one effect of the
transaction
Considers both effects of the
transactions
Unscientific system of accounting Scientific system of accounting
Incomplete system of accounting Complete system of accounting
Used by small traders and firms Used by large firms
Does need a qualified, dedicated
resource
Need a qualified and dedicated
resources
14. ACCOUNTING EQUATION
• Basic principle of accounting.
• Foundation of double-entry system of accounting.
• Forms the fundamental element of the balance sheet.
Total Assets = Capital + Total Liabilities
For a company, it can be rewritten as:
Total Assets = Share holders' equity + Total
Liabilities
16. ACCOUNTING EQUATION – TOTAL LIABILITIES
• Total of all the obligations of the business.
Total Liabilities = Long Term Liabilities + Current Liabilities
• Long term Liabilities :
– Obligations of a company that are due more than one year in the
future.
– Obligation amount is higher.
– Example: Debenture, Loan etc.
• Current Liabilities:
– Short-term liabilities of a business which are expected to be
settled within 12 months.
17. ACCOUNTING EQUATION – CAPITAL
• Total of all the resources of the business used for carrying out its
activities.
Shareholders Equity = Share Capital + Retained Earnings
• Share Capital:
– Resources contributed in return of the ownership of business.
• Retained Earnings:
– Portion of the profit kept aside for reinvestment into business.
18. • Total resources owned by a company used for carrying out its
activity and could be converted into cash.
• Fixed Assets:
– Assets that are used for long term use.
– Cannot be converted into cash quickly.
– Example: Land, Machinery etc.
• Current Assets:
– Assets that are consumed within a short period of time.
– Can be converted to cash quickly.
– Example: Stock, Debtors etc.
ACCOUNTING EQUATION – ASSETS
Total Assets = Fixed Assets + Current Assets
19. ACCOUNTING EQUATION
• Mr. ABC started a business by contributing Rs 1,20,000. The business
now has a total assets of Rs 5,50,000. Calculate the liabilities of the
firm.
• If the assets of a firm is Rs 3,40,000 and the liabilities are Rs 2,10,000
how much would the capital amount be?
20. ACCOUNTING PROCESS
The systematic process of Recording, Classifying and Summarizing
transactions in a business
Transaction
• Journals
Recording
• Ledgers
Classifying
• Final
Accounts
Summarizing
21. ACCOUNTING EQUATION – RECORDING
• First step in the accounting process.
• Recorded irrespective of the nature or type.
• Transactions are recorded chronologically.
• Recorded into books of accounts called as Journals.
• Journals are ‘Primary books of Accounts’.
• Process of writing transaction into journals is called as
Journalizing.
22. ACCOUNTING EQUATION – CLASSIFYING
• Second step in the accounting process.
• Transactions are grouped based on its nature and type.
• Similar transactions are grouped and rewritten.
• Rewritten into books of accounts called as Ledgers.
• Ledgers are Secondary books of Accounts.
• Process of transferring transactions from Journals to
Ledgers is called as Posting.
23. ACCOUNTING EQUATION – SUMMARISING
• Final step in the accounting process.
• Outcome of the transactions are determined.
• Profit position and Financial position of the business is
estimated.
• Estimated by preparing the Final accounts of business.
25. ACCOUNTING PRINCIPLES
• Accounting principles are the rules and guidelines that
companies must follow when reporting financial data.
• Financial Accounting Standards Board (FASB) issues a
standardized set of accounting principles is referred to as
generally accepted accounting principles (GAAP).
26. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
• Common set of accounting principles, standards and
procedures.
• Companies must follow while preparing books of accounts
& financial statements.
• Indian Accounting Standard is referred to as Ind-AS.
• Issued by Accounting Standards Board (ASB) of Institute of
Chartered Accountants of India (ICAI).
• Comprises of ‘Accounting Concepts’ and ‘Accounting
Conventions’.
28. ACCOUNTING CONCEPTS
• Accounting concepts are the fundamental accounting
assumptions
• Act as a foundation for preparation of books of accounts.
29. ACCOUNTING CONCEPTS
• Business Entity Concept: The concept assumes that the
business enterprise is independent of its owners.
• Money Measurement Concept: As per this concept, only
those transaction which can be expressed in monetary
terms are recorded in the books of accounts.
• Cost concept: This concept holds that all the assets of the
enterprise are recorded in the accounts at their purchase
price
30. ACCOUNTING CONCEPTS
• Going Concern Concept: The concept assumes that the
business will have a perpetual existence, i.e. it will continue
its operations for an indefinite period.
• Dual Aspect Concept: It is the primary rule of accounting,
which states that every transaction has two effects, and
both need to be accounted.
• Realization Concept: As per this concept, revenue should be
recorded by the firm only when it is realized.
31. ACCOUNTING CONCEPTS
• Accrual Concept: Expenses should be recognized when they
become due for payment.
• Accounting Period Concept: The concept says that financial
statement should be prepared for every period, i.e. at the
end of the financial year.
• Matching Concept: The concept holds that, the revenue for
the period, should match the expenses.
33. ACCOUNTING CONVENTIONS
• Accounting conventions are the methods and procedures
which have universal acceptance.
• To be followed by the firm during the preparation of
financial statement.
34. ACCOUNTING CONVENTIONS
• Consistency: Financial statements can be compared only
when the accounting policies are followed consistently by
the firm over the period. However, changes can be made
only in special circumstances.
• Disclosure: This principle state that the financial statement
should be prepared in such a way that it fairly discloses all
the material information to the users, to help them in taking
a rational decision.
35. ACCOUNTING CONVENTIONS
• Materiality: This concept is an exception to the full
disclosure convention which states that only those items to
be disclosed in the financial statement which has a
significant economic effect.
• Conservatism: This convention states that the firm should
not anticipate incomes and gains but provide for all
expenses and losses.
37. TYPES OF ACCOUNTS
• An account is a functional unit.
• It is fundamental element in an accounting system.
• It helps to classify and summarize measurements of
business activity.
• There are mainly three types of accounts in accounting.
1. Personal Account
2. Real Account
3. Nominal Account
38. TYPES OF ACCOUNTS – PERSONAL ACCOUNT
• Represents an individual or an organization.
• These accounts are related to individuals, firms, companies,
etc.
• Example: Amazon Account, Thomas Account, etc.
39. TYPES OF ACCOUNTS – REAL ACCOUNT
• Represents Assets of a firm.
• All assets of a firm, which are tangible or intangible, fall
under the category.
• Example: Land Account, Machinery Account.
40. TYPES OF ACCOUNTS – NOMINAL ACCOUNT
• Represents incomes, gains, expenses and losses of a firm.
• The result of all nominal accounts is either profit or loss.
• Example: Commission, Interest, etc.
41. IDENTIFY THE TYPE ACCOUNT
From the following, identify the type of account:
• Land
• Amazon
• Rent
• Machinery
• Motor van
• Thomas
• Salary
• Flipkart
• Computer
• Capital
• Drawings
• Interest received
• Interest paid
• Furniture
• Motor van repair
• Electricity
• Rent received
• Commission paid
• Raju’s loan
• Depreciation
• ICICI Bank
• Kristu Jayanti
College
• Purchase
• Sales
• Wages
• Fuel
42. GOLDEN RULES OF ACCOUNTING
• Forms the very basis of accounting.
• Acts as a cornerstone for all bookkeeping.
• Used to prepare an accurate journal entry.
Effect Personal Real Nominal
Debit The receiver What comes in All expenses and losses
Credit The giver What goes out All incomes and gains
43. IDENTIFY TYPES OF ACCOUNT & EFFECT
From the provided transactions, identify the accounts, types
of account and effect of the transaction.
Transaction Account Type of Account Effect
1.
2.
Transaction Account Type of Account Effect
Paid rent for cash Rs
1,200
1. Rent Account Nominal Account Debit
2. Cash Account Real Account Credit