Various Transaction takes Place in business Everyday. For Example goods sold to customer,Purchase From Suppliers,cash paid to creditors,Receive From Debtors,Expenses and Income received,All this Transaction is Recorded and for this differents accounts are maintend to show Transactions.
Acoount is the Individual Record of assets,Liability,Revenue,
In accounting There are mainly Three Types of Account
1)NOMINAL ACCOUNT-This account is related to business men's expenses,income,Profit and losses.which means,the final results of nominal account is either loss or profit.
GOLDEN RULE FOR NOMINAL ACCOUNT IS
Debit all expenses & losses
Credit all incomes & gains
2)REAL ACCOUNT-This account is related to assets whether they are tangible or intangible,tangible is like those assets which are touch and felt ex-buiding,machine and stock, land, etc.intangible accounts are those whicha can't be touched Few examples of such real accounts are goodwill, patents, trademarks, etc.
Golden rule for real accounts
Debit what comes in
Credit what goes out
3) Personal Accounts-These accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.
Golden rule for personal accounts
Debit the receiver
Credit the giver
Many banks have different products on the basis of customer's age, income and gender. Here are a few different kind of bank accounts that you can open.
There are mainly three types of bank account -
1)Demand Deposits-A demand deposit is an account with a bank or other financial institution that allows the depositor to withdraw his or her funds from the account without warning
Example - Amount deposited in savings and current a/c
2)Term Deposits-also known as time deposits, are investment deposits made for a predetermined period, ranging from a few months to several years. The depositor receives a predetermined rate of interest on the term deposit over the specified period. Funds deposited for longer periods command a higher interest rate. Term deposit accounts pay a higher rate of interest than traditional savings accounts.
3)Non-Resident Deposits-These accounts are only opened and mainted in the foreign currency.these accounts are opened in following currencies-us dollar,pound,uro,yen etc.
4)Current Acoount-these accounts are generally mainted by businessmen and daily transactions and for these bank does not pay any interest wheares they charge a amount