Suppliers Customers Lenders Nominal accounts Nominal Accounts are Accounts which relate to incomes and expenses and gains and losses of a business concern. For example, Land Building Goodwill Purchases Cash Personal Accounts Personal Accounts are Accounts which relate to persons. Real accounts include tangible and intangible accounts. Real Accounts Real Accounts are Accounts relating to properties and assets, which are owned by the business concern. Financial statements will be useful to the following parties: Suppliers Customers Employees Banks Suppliers of equipments, buildings and other assets Lenders Ownersġ.1.1 Types of Accounts There are basically three types of Accounts maintained for transactions : Real Accounts Personal Accounts Nominal Accounts Lesson Objectives On completion of this lesson, you will be able to understand Principles and concepts of Accounting Double Entry System of Accounting Financial Statementsġ.1 Introduction Accounting is a process of identifying, recording, summarising and reporting economic information to decision makers in the form of financial statements.
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