Answer Posted / neet

The business transactions can be grouped under three types of accounts :

Personal accounts
Real accounts
Nominal accounts
Personal Accounts

Personal accounts are the accounts of persons or firms that the business deals with. These are primarily of three types :

Natural person’s account : These are accounts of real persons who transact with the business in various capacities. The proprietor’s account and the accounts of customers are some examples of natural person’s accounts
Artificial person’s accounts : These are accounts of firms and entities that transact with the business. The accounts of a limited companies or banks that are not real persons are the examples of artificial person’s accounts.
Representative personal account : These are accounts that represent certain person or persons. If a business has not paid the rent of a number of shops for the past two months then all landlords are creditors of the business and the amount due to them is recorded under a common head called Rent Outstanding Account. This is a representative personal account. Other examples of representative personal accounts are Interest Outstanding and Interest Paid in Advance accounts.
Real Accounts

Real accounts are the accounts of the properties, assets and possessions of a business. These can be of two types :

Tangible Real accounts: These are accounts of things that can be touched, measured, sold or purchase. Examples of tangible real accounts are land account, furniture account and cash account.

Intangible Real accounts: These are accounts of things that cannot be touched in the physical sense but can be measured in terms of money value. Trademark or patent rights are examples of intangible real accounts.

Nominal Accounts

Nominal accounts are the accounts of each head of expense or income of a business. They are used to define the nature of the transactions; hence, they are also called fictitious accounts. Without nominal accounts, it is very difficult for the management to find out where the money was spent. As these accounts are used to define the nature of the transaction they are nominal accounts.

Certain rules have to be followed for the different accounts to decide which account has to be debited and which has to be credited. It is also important to understand whether the transaction has to be posted n the debit side or the credit side of an account

why do you want to work here?

2199

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how to do finalisation account ,pls tell me step by step ?

2585

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Expand--------SRTA

1993

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Expand-------NAST

2268

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What is the GDP growth?

2126

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What are the names of the codes which are needed for RTGS ? Payment and wire transfer respectively ?

1851

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Classify bank account, stock of stationary account, returns inward account ou$tstanding rent account and capital account into real, personal and nominal account.

2219

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Give me the asset revaluation (at the time of asset value increase & decrease) journal entrys?

2228

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What do you mean by Revenue? does it include the Service Tax,VAT etc., by any chance ?

2089

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hdn Systems Pvt. Ltd., manufactures a consumer durable which passes through two processes M and N. From the following details prepare necessary process ledger accounts bringing out clearly the cost of the product at each stage. Process ‘M’ Process ‘N’ Materials (Rs.) 30,000 3,000 Labour (Rs.) 10,000 12,000 Overheads (Rs.) 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4% Scrap value of loss (per unit) Re. 1.00 Rs. 2.00 There is no opening or closing W-I-P or stock at processes. Final output from the process ‘N’ was 17,000 units

2225

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Sales for ABC Company were Rs.150,000 for 2003.The beginning inventory was 30% of the cost of goods sold.The ending inventory was 50% of the beginning invetory.Selling expenses were 10% of sales and absorbed 30% sales.Income taxes were 30% of net income before taxes.

2148

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outstanding expenses, prepaid or unexpired expenses

4051

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objective of accounting

2081

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A company produces and sells 12500 units of Commodity X at Rs 50 each. The variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000 per annum. Calculate the PV ratio and BEP if.  The selling price is reduced by 5 %.  Fixed cost is increased by 2 lacs

1881

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company's total overhead expense is containing which are the expenses? Definition of overhead expense.

2102

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