Define the term "Account"

What do you mean by the term "Account" ? How many types of Accounts are there ? Describe them with the proper illustration each.

2 Answer(s)


Account is a summarised record of business transctions pertaining to a particular item like person,asset.liabilty,expenses etc.It is prepared in a standard format in T shape having two sides- left side and right side.

Types of accounts:
a)Personal accounts: This includes account of natural,artificial persons etc.Example-Debtors a/c,creditors a/c
b)Real accounts: These are the accounts of tangibles or intangibles. Example-Funriture a/c, goodwill a/c.etc
c) Nominal account: These are the accounts of expenses and paid a/c,discount a/


well-explained Anu ji.