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An Account is basic building block of accounting. There are six types of account or accounting pillars used in recording economic activity in a systematic way.

>> See Contra account

 

types of accounts

 

>> See Golden Rules of Accounting.

Example 1:  

For each of the following, write Types of Account and Normal Balance?

SNAccountsType of AccountNormal Balance
1CashAssetDR
2Accounts PayableLiabilityCR
3Income TaxExpenseDR
4InventoryAssetDR
5Transportation costExpenseDR
6Prepaid RentAssetDR
7SalesRevenueCR
8Note PayableLiabilityCR
9Bill ReceivablesAssetDR
10Salary OutstandingLiabilityCR
11Rent and TaxesExpenseDR
12Common StockOwner's EquityCR
13Sundry DebtorsAssetDR
14Commission (CR)RevenueCR
15Leasehold LandAssetDR
16Utility BillsExpenseDR
17Other IncomeRevenueCR
18Land and BuildingAssetDR
19Insurance PremiumExpenseDR
20Payable and OutstandingLiabilityCR
21Owner InvestedOwner's EquityCR
22DrawingsDrawingDR
23Bank ChargesExpenseDR
24Salaries receivedRevenueCR
25Fuel ExpenseExpenseDR
26Loan to EmployeesAssetDR
27Bank AccountAssetDR
28Wages earnedRevenueCR
29Marketable SecuritiesAssetDR
30Unearned RevenueLiabilityCR

 

>> Practice Types of Accounts Quiz 1 and Quiz 2.

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Next Lesson: Accounting Equation

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References

Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2008). Advanced Accountancy (Vol. I & II). New Delhi: S Chand & Co.

Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2008). Corporate Accounting. New Delhi: S. Chand and Co.

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Accounting Principles (10th ed.). Hoboken: John Wiley & Sons, Inc.

Williams, M., & Bettner, H. (1999). Accounting (The basic for business decisions). (11th, Ed.) USA: Irwin McGraw- Hill.

 

1 Comment

  1. M.Akram

    Please provide the accounts related deta for entry test.

    Reply

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