What Are The 6 Types Of Accounts?

What are various types of accounts?

The Different Types of Accounts in Small Business AccountingCash Accounts.

A cash account is used to record payments, deposits and withdrawals in real liquid currency.

Bank Accounts.

Credit Cards.

Undeposited Funds.

Income Accounts.

Expense Accounts.

Assets.

Liabilities.More items…•.

How many types of bank accounts are there?

Traditionally banks in India have four types of deposit accounts, namely Current Accounts, Saving Banking Accounts, Recurring Deposits and, Fixed Deposits.

Who is the father of accounting?

Luca PacioliLuca Pacioli, was a Franciscan friar born in Borgo San Sepolcro in what is now Northern Italy in 1446 or 1447.

What is petty cash book?

The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. … This format is an excellent way to monitor the current amount of petty cash remaining on hand.

What are the golden rules of life?

10 Golden Rules of Life :Do whatever you want to do. … Treasure your physical and mental health both. … Be honest with yourself and take good care of yourself. … Adapt two Personalities: Creativity and Persistence. … Be kind to others and yourself. … Learn good habits from everyone you meet. … Move fearlessly with positivity.More items…•

What are the 5 types of accounts?

5 Types of accountsAssets.Expenses.Liabilities.Equity.Revenue (or income)

What is the golden rule for personal account?

The golden rule for personal accounts is: debit the receiver and credit the giver. In this example, the receiver is an employee and the giver will be the business.

What are the two major types of books of accounts?

Next Lesson: Cash Book There are two main books of accounts, Journal and Ledger. Journal used to record the economic transaction chronologically. Ledger used to classifying economic activities according to nature.

What is the 3 golden rules of accounts?

Take a look at the three main rules of accounting: Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debit expenses and losses, credit income and gains.

What are the 2 types of accounting?

The two primary methods of accounting are accrual accounting (generally used by companies) and cash accounting (generally used by individuals).

What are the six major groups of accounts?

Balance Sheet AccountsAsset accounts.Liability accounts.Revenue accounts.Expense accounts.

What are the 3 golden rules?

To apply these rules one must first ascertain the type of account and then apply these rules.Debit what comes in, Credit what goes out.Debit the receiver, Credit the giver.Debit all expenses Credit all income.

What are 4 types of bank accounts?

4 Most Common Types of Bank AccountsChecking Account. The most basic type of bank account is the checking account. … Savings Account. A checking account and savings account go together like Batman and Robin. … Money Market Deposit Account. … Certificate of Deposit (CD) … 4 Most Common Types of Bank Accounts.

Is cash a real account?

Real accounts, like cash, accounts receivable, accounts payable, notes payable, and owner’s equity, are accounts that, once opened, are always a part of the company. Real accounts show up on a company’s balance sheet, which is the financial statement that lists all the accounts that a company has and their balances.

What is the head of account?

If the first digit is ‘0’ or ‘1’, the Head of Account will represent Revenue Receipt. … Adding 2 to the first digit of the Revenue Receipt will give the Code Number allotted to corresponding Revenue Expenditure Head; adding another 2—the Capital Expenditure Head and another 2—the Loans and Advances Head of Accounts.

What is a group account?

Group account is a book account whose assets consist of the balances and reservations on the current account of group members and the overdraft of the group.

What is the golden rule in accounting?

The following are the rules of debit and credit which guide the system of accounts, they are known as the Golden Rules of accountancy: First: Debit what comes in, Credit what goes out. Second: Debit all expenses and losses, Credit all incomes and gains. Third: Debit the receiver, Credit the giver.

What are 3 types of accounts?

A business must use three separate types of accounting to track its income and expenses most efficiently. These include cost, managerial, and financial accounting, each of which we explore below.