Types of Account.pptx
- 1. Types of Account & AccountingRules Dr. W. Saranya Associate Professor Department of B Com PA
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- 9. Illustration :1 An entitynamed Orange Ltd. has the following transactions. 1.It deposits Rs.10,000 into Bank 2.It buys goods worth Rs.50,000 from Apple Ltd. 3.It sells goods worth Rs.35,000 to Melon Ltd. 4.It pays Rs.12,000 as Rent for its premises 5.It earns Rs.3,000 as interest on a bank account.
- 10. Transaction Accounts involvedType of Accounts Deposit Rs.10,000 in Bank Bank Account Cash Account Real Account – Asset account Real Account – Asset account Purchase goods worth Rs.50,000 from Apple Ltd. Purchase Account Apple Ltd. Account Nominal Account – Expense account Personal Account – Creditors account Sale of goods worth Rs. 35,000 to Melon Ltd. Sales Account Melon Ltd. Account Nominal Account -Income Account Personal Account – Debtors Account Pays Rs.12,000 as rent Rent Account Bank Account Nominal Account Real Account – Asset account Earn Rs.3,000 as interest on Bank account Interest received Bank Account Nominal Account – Income Account Real Account – Asset Account