TALLY
Accounting is the systematic and comprehensive way recording of financial transactions related to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities. Accounting is one of the key functions for almost any business; it may be handled by a bookkeeper and accountant at small firms or by sizable finance departments with dozens of employees at large companies
Personal Account:- As the name show "personal account" it means account for an individual person or the firm. it can be a person Eg. Ram, Shyam, joy Etc or the firm or a company it will count in personal account.
Real Account:- A real account is a general ledger account that does not close at the end of the accounting year. The balance of real account carry forward to next yeat.
real accountsa are balance sheet item like- asset accounts (cash, account receivable, buildings, etc.), liability accounts (notes payable, account payable, wages payable, etc.), and stockholder equity account etc.
Nominal Acccount:- Nominal accounts are directly related to Excpens and income of the firm Expense can be direct and indirect both.
Monetary traction of Business is to be recorded in the book of account of account by the method of Double accounting system.
Personal Account:- As the name show "personal account" it means account for an individual person or the firm. it can be a person Eg. Ram, Shyam, joy Etc or the firm or a company it will count in personal account.
Real Account:- A real account is a general ledger account that does not close at the end of the accounting year. The balance of real account carry forward to next yeat.
real accountsa are balance sheet item like- asset accounts (cash, account receivable, buildings, etc.), liability accounts (notes payable, account payable, wages payable, etc.), and stockholder equity account etc.
Nominal Acccount:- Nominal accounts are directly related to Excpens and income of the firm Expense can be direct and indirect both.
Monetary traction of Business is to be recorded in the book of account of account by the method of Double accounting system.
Personal account
|
Real account
|
Nominal account
|
1.Person
2. Firm
3. Company Etc
|
1. Cash
2. Building
3. Furniture
4. Machinery etc
|
1. Expenses & losses
2. Income and gain
|
GOLDEN RULE
Personal
|
Real
|
Nominal
|
1. Debit the receiver
2. Credit the Giver
|
1. Debit what comes in
2. Credit what goes out
|
3. Debit All expense
4. Credit all income & gain
|
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