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  • Meaning of An Account

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    Subhash Bhattar
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    This document discusses different types of accounts used in accounting - personal accounts, real accounts, and nominal accounts. It provides examples of each type of account and explains that personal accounts debit the receiver and credit the giver, real accounts debit what comes in and credit what goes out, and nominal accounts debit expenses and credit incomes. The document also gives examples of common accounts used like cash, stationary, building, rent, interest, sales, etc. and provides rules for determining which accounts to debit and credit for different transactions.

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    Meaning of an Account

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    This document discusses different types of accounts used in accounting - personal accounts, real accounts, and nominal accounts. It provides examples of each type of account and explains that personal accounts debit the receiver and credit the giver, real accounts debit what comes in and credit what goes out, and nominal accounts debit expenses and credit incomes. The document also gives examples of common accounts used like cash, stationary, building, rent, interest, sales, etc. and provides rules for determining which accounts to debit and credit for different transactions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    9 views10 pages

    Meaning of An Account

    Uploaded by

    Subhash Bhattar
    This document discusses different types of accounts used in accounting - personal accounts, real accounts, and nominal accounts. It provides examples of each type of account and explains that personal accounts debit the receiver and credit the giver, real accounts debit what comes in and credit what goes out, and nominal accounts debit expenses and credit incomes. The document also gives examples of common accounts used like cash, stationary, building, rent, interest, sales, etc. and provides rules for determining which accounts to debit and credit for different transactions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    of 10

    An account is a summary of relevant transaction at one

    place relating to a particular head. It record not only the


    amount of transaction but also their effect and direction.
    ACCOUNTS

    PERSONAL REAL
    NOMINAL
     These account related to the natural person,
    artificial person & representive person.
     Natural-ashok’s account
     Artificial-multani & firm account
     Representive-o/s salary account.
     The account related to the tangible or inta-
    ngible assets or goods or commodities
     Tangible- land , building
     Intangible-goodwill,copywrite
     Purchase or sale of goods
     The account related to expenses, losses,
    profit & gains.
     Expenses- salary, stationary
     Profit & gains- discount received,interest

    received
     Cash account
     Stationary account
     Building account
     Rent account
     Interest account
     Sales account
     Stock account
     Discount account
     Capital account
     Aditya Bidla’s account
     Bad debts account
     Panjab National Bank’a/c
     PERSONAL ACCONT
     Debit the receiver & credit the giver

     REAL ACCOUNT
     Debit what comes in and credit what goes out

     NOMINAL ACCOUNT
     Debit all the expenses & credit all the

    incomes
     Find out two account from each transaction.
     recognise its nature
     Use the rule of journal of particular account
     One account will debit & another will credit
     GOODS SOLD OF Rs. 5000
     Goods sold on cash
     Goods sold to ramesh
     Goods sold on cash to Ramesh
     In the cash transation one account will be

    cash account,while in credit account-one


    account is of a person,firm or institute
    account.
     Arvind started business with cash Rs. 50000
     Goods purchased from Mohan on credit
    Rs.12000
     Goods sold for cash to yogesh Rs. 5000
     Rent paid of Rs.1000
     Commission received Rs. 7000
     Paid to Mohan of Rs.12000
     Stationary purchased of Rs. 1000
     Purchased goods returned to Mohan Rs.2000

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