With this PPT you may get a good knowledge over what is an Account? How may types are there? How they classified? etc...

1. SUBBU PULLELA

2. SUBBU PULLELA
Double Entry System:
WHAT IS AN ACCOUNT…?
Account:
It is the only scientific system of accounting. According to it,
every transaction has two-fold aspects debit and credit and
both the aspects are to be recorded in the books of accounts.
A person starts his business with says ₹ 30,000; Transactions
entered into the firm will alter the cash balance in two ways,
one will increase the cash balance and other will reduce it.
Payments for goods purchased, Salaries, Rent, etc… will
reduce it; Sale of goods for cash, Collection from customers
will increase it.

3. In accounting we open an account for each item in
our records. The account has the following format.
Account has the format of the letter ‘T’.
SUBBU PULLELA
Date Particulars Ref. Amount Date Particulars Ref. Amount
Dr. Cr.
The columns are self-explanatory except that the column for
Reference (Ref.) is meant to indicate the sources where
Information about the entry is available.

4. SUBBU PULLELA
Debit (Dr.) and Credit (Cr.):
A Debit is an accounting entry that either increases
an asset or expenses account, or decreases a liability or
equity account. It is positioned to the left in an accounting
Entry.
A Credit is an accounting entry that either increases a
liability or equity account, or decreases an asset or expenses
account. It is poisoned to the right in an accounting entry.

5. ACCOUNTS
Representative
Artificial
Natural
Real
PERSONAL
IMPERSONAL
Nominal
Ram, Raheem, Robert,
etc…
Governments, Companies,
Clubs, Corporations, etc…
o/s liabilities, p/p capital
Capital A/c, Drawings A/c, etc…
Assets like
Cash, Building, Vehicles,
Furniture, Machinery, etc…
Goods like
Purchases, Sales,
Purchase Returns Sales
Returns, etc…
Expenses & Losses like
Cash, Building, Vehicles,
Furniture, Machinery, etc…
Incomes & Gains like
Interest Received,
Commission Received
etc…
CLASSIFICATION OF ACCOUNTS

6. SUBBU PULLELA
All the above classified accounts have two rules each,
one related to Debit and other related to Credit for recording
the transactions.
which are termed as golden rules of accounting, as
transactions are recorded on the basis of double entry
system.
Golden Rules of Accounting:

7. SUBBU PULLELA
Golden Rules of Accounts
Personal Account Deals with persons ( Artificial / Natural)
Debit the receiver
Credit the giver
Real Account Deals with properties
Debit what comes in
Credit what goes out
Nominal Accounts Deals with Expenditure, Losses, Incomes an
gains
Debit all expenses and losses
Credit all incomes and gains