What is Accounting?
Accounting is a systematic & summarized record of business transactions relating to personal property, expenses, income etc.Accounting Types
1. PERSONAL ACCOUNT
A personal account is an account relating to the persons, individuals, partnership firms, companies, clubs, institute, local authority, association, state government, central government etc.
Rule:-
Who is the receiver ……….dr.
To who is the giver ……….cr.
2. REAL ACCOUNT
The real account relates to the property which may either come into the business or go from the business. assets: -motor car, machinery, furniture, cash etc.
Rule:-
What comes in…………..dr
What goes out…………..cr
3. NOMINAL ACCOUNTS
Nominal a/c is the account that relates to business expenses, loss, income & gains. E.g. salary, rent, discount, interest, insurance, legal exp. Etc.
Rule:-
Expenses & Losses……..dr
Income & gains…………cr
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