Define the term "Account"



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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)


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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 incomes.eg-interest paid a/c,discount a/c.et

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well-explained Anu ji.

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