1/2/2023 0 Comments Debit credit classes![]() ![]() For example, Building A/c, Furniture A/c, Cash A/c, etc. It comprises of those assets, properties or possessions that one can touch, see and measure. So, these are permanent accounts and have the following categories: (a) Tangible Real Account: The balances of these accounts are carried forward to the next accounting year. Thus, they continue to appear in the Balance Sheet. Therefore, these accounts are not closed at the end of the accounting year. These accounts are the accounts of all the assets and liabilities of the business. Impersonal Accounts are the accounts other than the Personal Accounts. Hence, Wages Outstanding A/c, Pre-paid Rent A/c, Accrued Interest A/c, Unearned Commission A/c, etc. those of expenses and incomes become outstanding, pre-paid, accrued or unearned, they fall under this category. Most importantly, when the nominal accounts i.e. These persons may be natural or artificial. 3] Representative PersonsĪs the name suggests, these accounts represent the accounts of the persons. These, therefore, include Hindu undivided families, partnership firms, co-operative societies, an association of persons, companies, municipal corporations, hospitals, banks, government bodies, etc. They possess a separate identity in the eyes of law. These are those persons who are not human beings but can act and work like humans. Thus, Any individual name like Ram,Shyam 's A/c ,Debtor’s A/c., Creditor’s A/c., Proprietor’s A/c., Proprietor’s Capital A/c., Proprietor’s Drawings A/c. Here, we include accounts belonging to humans. Hence, Personal accounts are further classified as: Let us now understand them and how the accounts are classified. The rules of debit and credit under the Traditional approach are golden rules. ![]() Further, under the Traditional approach, all the ledger accounts are classified as “Personal” and “Impersonal accounts”. Traditional approach classifies the accounts while Modern approach uses the Accounting equation for accounting. The other way is the Modern approach (the American approach). Firstly, according to the Traditional approach (Classical Approach or British approach ). Nature of accounts can be classified into two types of approaches. ![]() ![]()
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