In this post, I will discuss “What is Account”.
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What is Account
In earlier times, separate diaries were kept to maintain different accounts. Which is called account in the language of Tally. There are three types of accounts.
Types of Accounts
- Personal Accounts
- Real Account
- Nominal Account
Identification of Accounts
Personal Account
- Account of Any Person, Society, Firm, Bank, etc. Called Personal Account.
- Examples: Jameel Attari, Jameel Attari Foundation, Jameel Attari and Sons, State Bank of India, etc.
Real Account
- Account of any Item OR Assets Called Real Accounts.
- Example:- Goods, Items, Cash, Furniture, etc
Nominal Account
- Any Profit-Loss and Income Expenditure Related Accounts are Called Nominal Accounts.
- Example:- Rent, Commission, Loss of fire, Baddebts, Carriage, Discount, Labour, Salary, etc.
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