Understanding Accounting Principles and Types of Accounts

Accounting is the art of recording, classifying, and summarizing financial transactions and events in terms of money. This involves interpreting the results to provide meaningful insights. The content covers transaction processing, financial statements, ledger management, and the different types of accounts like personal, real, and nominal accounts.

• Accounting Principles
• Types of Accounts
• Financial Transactions
• Ledger Management
• Interpretation

harris Follow

Uploaded on Aug 03, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

Presentation Transcript

1. By Mrs. Anita Rani Assistant Professor in Commerce Department

2. MEANING OF ACCOUNTING ACCOUNINTNG IS THA ART OF RECORDING ,CLASSIFYING AND SUMMARISING IN A SIGNIFICANT MANNER AND IN TERMS OF MONEY ,TEANSACTIONS AND EVENTS WHICH ARE IN PART AT LEAST ,OF A FINANCIAL CHARACTER AND INTERPRETING THE RESULTS THEREOF.

3. 1. TRANSACTI ONS 6. 2. BALANCE SHEET JOURNAL 5. TRADING AND PROFIT AND LOSS A/C 3. LEDGER 4. TRIAL BALANCE

4. Types of Accounts Personal A/c Inpersona l A/c Artifical Persona l A/c Natural Persona l A/c Nomina l A/c Real A/c Representative Personal A/c

5. PERSONAL ACCOUNT: IT IS A GENRAL LEDGER ACCOUNT CONNECTED TO ALL PERSONS LIKE,FIRM AND ASSOCIATION. REAL ACCOUNT: ALL ASSETS OF A FIRM WHICH ARE TANGIBLE OR INTANGIBLE FALL UNDER THE CATEGORY OF REAL ACCOUNT. EXAMPLE: MACHINARY, STOCK ,LAND, GOODWILL, TRADEMARKES ETC.

6. NOMINAL ACCOUNT: ACCOUNTS WHICH ARE RELATEDD TO EXPENSES, LOSSES, INCOMES OR GAINS ARE CALLED NOMINAL ACCOUNT. EXAMPLES OF NOMINAL A/C: PURCHASE A/C , SALARY A/C , COMMISSION ACCOUNT.

7. Personal A/c DEBIT THE Receiver CREDIT THE Giver Real A/c DEBIT What comes in CREDIT What goes out Nominal A/c Debit all losses and expenses Credit all income and gains