New world of Coding & Hacking

  TYPES OF ACCOUNTS 1.        Personal account: Personal accounts are the accounts of persons, firms, concerns and institutions while. The businessmen deal. Debit the receiver Credit the giver 2.        Real Account:  These are the accounts of things, materials, assets & properties. It has physical Existence which can be seen & touch.  Ex. Cash, Sale, Purchase, Furniture, Investment etc. Debit what comes in Credit what goes out 3.        Nominal account:   Nominal account is the account of services received (expenses and Losses) and Services Given (income and gain) Ex. Salary, Rent, Wages, Stationery etc. Debit all expense/losses Credit all income/ gains Note: - Under any transaction the total of debit column of the journal should be the same as that of credit column

BASIC CONCEPT OF ACCOUNTING Accounting:  It is an art of recording, classifying and summarizing in significant manner and in terms of money, transactions and events which are of financial character and interpreting the results thereof. Business transaction:  A business transaction is “The movement of money and money’s worth form one person to another”. Or exchange of values between two parties is also known as “Business Transaction”. Purchase: Purchase means goods purchased by a businessman from suppliers. Sales: Sales is goods sold by a businessman to his customers. Purchase Return or Rejection in or Outward Invoice:  Purchase return means the return of the full or a part of goods purchased by the businessman to his suppliers. Sales Return or Rejection out or Inward Invoice:     Sales return means the return of the full or a part of the goods sold by the customer to the businessman. Assets:  Assets are the things and properties possess...