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 |
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Next Lesson: Accounting Equation
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.
Please provide the accounts related deta for entry test.