.Archive Pages Design$type=blogging$count=15$label=hide


What are Main Type of accounts?

Explain your question in detail :: How many type of accounts are there in accountancy? Plz tell me the name of accounts and definition? - Sucheta Ghosh


Account is T – form table in which accountant records different transaction systematic and classified way after posting from journal.
For passing journal entries, you should know the rules of double entry system. Rules of double entry system apply on different accounts which we classified into two category.
1. Personal accounts
2. Impersonal accounts 

1. Personal accounts 
PERSONAL accounts are of persons. From watching these accounts we can find what amount, we have to give or what amount, we have to get. Personal account can also divide into following sub parts. 
( A ) Natural person’s personal account 
These accounts are of natural persons. These persons are made of blood, bones , skin and other living organs. We can touch them physically and they can feel us . They can sells the goods to us or we sell them goods. So, we need to make these account for tracking the amount receivable and payable. 

For example Visual’s account, Mohan’s Account etc.

( B ) Artificial person’s personal accounts 
Artificial persons are those which are not living human being but have existence in the eye of Law. They can operate their business by board of directors, managers and other authorities of organization. 

For example : - Chatanya Gorya Charitable trust account , Tally solution Company account , ICICI bank accounts , School account etc.

( C ) Representative person’s personal accounts 
These accounts are of Representative persons who represent following:- 
( i ) Outstanding Expenses account 
Outstanding expenses account are those personal account to whom, we have to pay expenses, we have already taken services from them. But still we have not paid them. This is also called liability account because its balance will be shown in liability side of organization’s balance sheet.

For example outstanding salary account , outstanding lighting bill , outstanding Internet charges account etc.

( ii ) Advance expenses account 
If we have paid the expenses in advance but still we have to obtain services .So, we make advance expenses account which represents the person to whom we have paid expenses in advance. 

For example Advance salary account , Advance lighting bill , Advance Internet charges account etc.

( iii ) Outstanding Income account 

This account shows the amount of income which is receivable from other party. 
We can explain this account with simple example 
Suppose if Ram have given services to Sham but after providing services, if Ram does not get his income, then Ram will open outstanding income account in his books. It is Representative account of Sham. This account will tell amount which is receivable from sham.

( iv ) Advance income account 
Advance income account is also personal account. This account is made when earning is received but services are not given. So, this account is very helpful to track the amount which is taken advance before giving services. 

2. Impersonal accounts 
All accounts which are not personal are impersonal accounts. It can be divided into sub part.

( a ) Real Account 
Real account shows the assets. 

For Example : In these account we can include stock account, cash account, tangible asset account, intangible assets accounts etc.

( b ) Nominal Account 
Nominal accounts are of expenses and income. All expenses and income are transferred to nominal account. 
For example: - Wages account, salary account, office expenses account, dividend account


Accounting Accounting Notes Accounting Presentations Accounting Software Accounting Solutions Business & Finance Business Solutions Career Solutions Computers & Internet Education Educational Solutions Finance Solutions Financial Accounting journal entries Latest Answers Management Accounting Philippines question Renting & Real Estate Rewards Small Business Tally Tax Solutions Taxation testimonials video
Accounting ! Answers: What are Main Type of accounts?
What are Main Type of accounts?
Accounting ! Answers
Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago