Accounting Principles and Types of Accounts
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.
Types of
Accounts
Personal
A/c
Inpersona
l A/c
Natural
Persona
l
A/c
Artifical
Persona
l
A/c
Representative
Personal
A/c
Real
A/c
Nomina
l
A/c
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.
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.
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
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.
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Presentation Transcript
By Mrs. Anita Rani Assistant Professor in Commerce Department
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.
1. TRANSACTI ONS 6. 2. BALANCE SHEET JOURNAL 5. TRADING AND PROFIT AND LOSS A/C 3. LEDGER 4. TRIAL BALANCE
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
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.
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.
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
