TYPES OF ACCOUNTS WITH GOLDEN RULES & ITS MEANING

TYPES  OF  ACCOUNTS WITH GOLDEN RULES & ITS MEANING

RULES  OF  DEBIT  AND  CREDIT

(1)  Personal A/c         :-       Debit  the Receiver.
                                               Credit the  Giver.

(2)  Real  A/c               :-       Debit  what  come  in.
                                               Credit  what  goes  out.

(3)  Nominal  A/c        :-       Debit  all  expenses  &  losses.
                                               Credit  all  income  &  gain

Personal account :The accountrelated to the person is called personal account for example  Ram , Rahim, bank ,outstanding  Rent  Extra  these  all come  under Personal account

Personal  A/c :-  Accounts  dealing  with  an  individual  OR  Corporate  bodies  OR  Institutions  Which  recognized  as  person  in  business  dealing.  E.g- Customers, Creditors, Debtors, Owner, Bank, Firm, capital etc.

Real Account :The  Account  includes  all  the  transaction  related  to  the  thing in  the  Business.  ex:  buildings,  machinery,  cash  etc.  these  all  Come  under  the  Real account

Ex: - rent paid, rent received, bad debts, profit on sale of an asset.

Real  A/c  :-  its  might  be  Tangible  A/c  (  which  is  touchable  in  nature  e.g-  fixed  assets,  and  current  assets,) measured  physically.

                                                          OR   

Intangible  A/c :-  (non-touchable  in  nature  e.g – Goodwill  a/c,  Patents  and  copyright.  Measurable  in  money  only.

Nominal Account :The  Account  which  includes  all  the  transaction  related  to Expenditures,  and  incomes.