Types of Accounts

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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

>> See Golden Rules of Accounting.

Example 1:

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

SN	Accounts	Type of Account	Normal Balance
1	Cash	Asset	DR
2	Accounts Payable	Liability	CR
3	Income Tax	Expense	DR
4	Inventory	Asset	DR
5	Transportation cost	Expense	DR
6	Prepaid Rent	Asset	DR
7	Sales	Revenue	CR
8	Note Payable	Liability	CR
9	Bill Receivables	Asset	DR
10	Salary Outstanding	Liability	CR
11	Rent and Taxes	Expense	DR
12	Common Stock	Owner's Equity	CR
13	Sundry Debtors	Asset	DR
14	Commission (CR)	Revenue	CR
15	Leasehold Land	Asset	DR
16	Utility Bills	Expense	DR
17	Other Income	Revenue	CR
18	Land and Building	Asset	DR
19	Insurance Premium	Expense	DR
20	Payable and Outstanding	Liability	CR
21	Owner Invested	Owner's Equity	CR
22	Drawings	Drawing	DR
23	Bank Charges	Expense	DR
24	Salaries received	Revenue	CR
25	Fuel Expense	Expense	DR
26	Loan to Employees	Asset	DR
27	Bank Account	Asset	DR
28	Wages earned	Revenue	CR
29	Marketable Securities	Asset	DR
30	Unearned Revenue	Liability	CR

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

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More Interest

Long Term Liabilities

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.

4 Comments

Kofi on October 25, 2022 at 1:56 am

Great work!!!
Reply
Minu on October 2, 2022 at 5:38 am

This is great style for showing types of accounts. This website very helpful for us specially exam point of view.
Reply
alizatariq25@gmail.com on November 29, 2021 at 7:01 am

Good
Reply
M.Akram on February 1, 2020 at 6:20 am

Please provide the accounts related deta for entry test.
Reply