Q1> What is accounting?
ans = an ‘account’ is a statement of transaction relating to one of the two aspects of a business transaction.
Types of account
- Personal account
- Real account
- Nominal account
Q2> What is personal account ?
For example= Mr. Manoj ,citi bank , Naveen and Sagar ,Customer and supplier.
Q3>what is real account?
These are related to the property or assets and cash belonging to a business concern.
For example= land and building , cash- hand ,Goodwill ,etc.
|Particulars a/c||debit||credit||Applied rules|
|Furniture a/c||9000||——||Debit what comes in|
|To case a/c||——||9000||Credit what goes out|
Q4>What is Nominal account?
these are relating to the incomes, expenses,losses and gains of a business concern.
For example: rent, salary,telephone expenses , discount allowed received,etc
DEBIT = All expenses and losses
CREDIT = All incomes and gains
|Particulars of account||debit||credit||Applied rules|
|Purchase a\c||7000||——-||Debit- all expenses and losses|
|To cash a/c||——||7000||Credit- all income and gains|
Q5> SUBSIDIARY BOOKS & CONTROL ACCOUNTS
Business transaction are first recorded in the journal and then posted to account.
For example , all cash transaction may be recorded in one book, all credit sales transaction in anather book ,and so on .
This section deals with the following special book.
1 cash book
2 purchases book
3 purchase return book
4 sales return
5 journal proper