Confusions2clarity

Here we will be moving in a journey from the deporting point of confusion into the clear path of clarity. Confusions like what is actually accounting,types of accounting,how accounting is done, what are the different types of accounts.

Accounting is a process of recording business transactions in a systematic manner in the books of accounts for a business,such as sole proprietor, partenrship firm or a joint stock company.

Types of Accounting

1. Financial Accounting

2. Cost Accounting

3. Company Accounting

4. Management Accounting

5. Forensic Accounting

6. Taxation Accounting

7. Government Accounting

Types of Accounts:

Generally accounts could be classified as follows:

a)Personal Accounts , there are two categories of personal accounts such as Natural persons like a real individual e.g.Mr.Abhishek and Artificial Person like ABC Co.Ltd, M/S Freddie Brothers etc.

b) Real Accounts are those which are tangible in nature and have physical existence, such as Tools,Buildings,Machinery etc.

c) Nominal Accounts which are for namesake only, they do not have physical existence and are intangible e.g. Rent,Fees,Bills etc.