Classification of accounts.pdf
•
0 likes•42 views
Accounting There are many types of accounts and with different work purpose. These are classified here. Accounts will be noted down in Ledger.
Recommended
More Related Content
Similar to Classification of accounts.pdf
Similar to Classification of accounts.pdf (20)
More from Simhadri Bhavana
Recently uploaded
Recently uploaded (20)
Classification of accounts.pdf
- 1. CLASSIFICATION OF ACCOUNTS Presented by - Simhadri Bhavana Guided by - Dr. Girija Nandini
- 2. A record of the relevant transactions relating to a particular head. It records not only the amount of transactions, but also their effects and directions. For example, a cash account will show all of cash received and paid. 2 WHAT IS AN ACCOUNT?
- 3. TYPES OF ACCOUNTS Personal Accounts Nominal Accounts An account for use by an individual for that person's own needs. A general ledger account that does not close at the end of the accounting year. A general ledger accounts that are closed at the end of each accounting year. Real Accounts
- 4. Debit Credit Personal Golden Rules: Real Nominal The Receiver The Giver What comes in? What goes out? All expenses & losses All income & gains
- 5. They are of three types: 2 PERSONAL ACCOUNTS 01 02 03 Natural Personal Account Artificial Personal Account Representative Personal Account
- 6. Natural Persons are human beings. Therefore, we include the accounts belonging to them under this head. For instance, Debtors, Creditors, Capital A/c, Drawings A/c, Ram a/c, etc. NATURAL PERSONAL ACCOUNTS ARTIFICIAL PERSONAL ACCOUNTS They are not human beings. An account recording financial transactions with an artificial person created by law. Ex- Bank a/c, xyz com. a/c
- 7. An account indirectly representing a person or persons. These represent the natural or artificial accounts. Ex- Salary outstanding a/c, Pre paid insurance a/c, Drawing a/c 5 REPRESENTATIVE PERSONAL ACCOUNTS
- 8. 01. Tangible real account Account relates to an asset which can be touched, felt, seen and measured. Ex- Machinery a/c, Furniture a/c, etc., REAL ACCOUNTS 02. Intangible real account Accounts relates to assets which cannot be touched physically but can be measured in value. Ex- Goodwill a/c, Patent a/c, Trade marks a/c etc.,
- 9. NOMINAL ACCOUNT They are the general ledger accounts that are closed at the end of each accounting year. They are also referred to as temporary accounts. These accounts deals with expenses, incomes, profits and losses. Ex- Rent, Salary, Telephone bill
- 10. THANK YOU!