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 |
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.
Great work!!!
This is great style for showing types of accounts. This website very helpful for us specially exam point of view.
Good
Please provide the accounts related deta for entry test.