Quick Answer: What Are The Types Of Major Accounts?

What are the 2 types of accounting?

The two main accounting methods are cash accounting and accrual accounting..

What is real account example?

A real account is an account that retains and rolls forward its ending balance at the end of the year. … The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity. Examples of real accounts are: Cash. Accounts receivable.

What type of account is sales?

In accounting, the sales account is not an asset or a liability account. It’s a revenue account. So sales are how your business generates income (revenue). However, when you make a sale, it involves a revenue account and an asset account.

What are the 3 golden rules of 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 is chart account example?

Chart of Accounts examples:Numeric RangeAccount TypeFinancial Report300 – 399EquityBalance Sheet400 – 499RevenueProfit & Loss500 – 599Cost of Goods SoldProfit & Loss600 – 699Operating ExpensesProfit & Loss4 more rows•Mar 22, 2020

What are the 5 types of accounts?

The five account types are: Assets, Liabilities, Equity, Revenue (or Income) and Expenses. To fully understand how to post transactions and read financial reports, we must understand these account types.

What are the 5 major types of accounting?

Accounting Categories and Their Role There are five main types of accounts in accounting, namely assets, liabilities, equity, revenue and expenses. Their role is to define how your company’s money is spent or received. Each category can be further broken down into several categories.

What are the 3 types of accounts?

3 Different types of accounts in accounting are Real, Personal and Nominal Account. Real account is then classified in two subcategories – Intangible real account, Tangible real account. Also, three different sub-types of Personal account are Natural, Representative and Artificial.

What are the 6 types of accounts?

Balance Sheet AccountsAsset Accounts.Liability Accounts.Equity Accounts (for sole proprietorship and partnerships)Equity Accounts (for corporations)Revenue Accounts.Expense Accounts.Asset accounts.Liability accounts.More items…

What is account and its types?

According to the double entry system of bookkeeping, there are three types of accounts that help you to maintain an error-free record of your journal entries. Each account type has a rule to identify its debit and credit aspect called as the Golden Rule of Accounting. … Personal Accounts. Real Accounts. Nominal Accounts.

What are the 3 golden rules?

The Golden Rules are: Personal Account – Debit the Receiver & Credit the Giver. Impersonal Real Account – Debit what Comes In & Credit what Goes out. Impersonal Nominal Account – Debit all Expenses and Losses & Credit all Income and Gains.

How do you classify accounts?

According to modern approach, the accounts are classified as asset accounts, liability accounts, capital or owner’s equity accounts, withdrawal accounts, revenue/income accounts and expense accounts.