What is the rule of asset account?
Table of Contents
What is the rule of asset account?
Solution. Rule for an Asset Account is ‘Increases in assets are debits and decreases credit’
How do you classify transactions?
Classification of Transactions:
- Cash Transaction: If the value of a transaction in met is cash immediately, it is called cash transaction.
- Credit Transaction: If the value of the transaction is not met in cash immediately, it is called credit transaction.
- Paper Transaction:
- External Transaction:
- Internal Transaction:
What are the three types of personal accounts?
Real, Personal and Nominal accounts are the traditional classification of account types in accounting, however, personal accounts are further distinguished under three categories such as Natural, Artificial, and Representative.
What is difference between accounts and finance?
The difference between finance and accounting is that accounting focuses on the day-to-day flow of money in and out of a company or institution, whereas finance is a broader term for the management of assets and liabilities and the planning of future growth.
What are different types of personal accounts?
Type of Personal Accounts
- a. Natural Persons. These accounts relate to natural persons such as Veer’s A/c, Ayan’s A/c, Karen’s A/c etc.
- b. Artificial Accounts. These accounts relate to companies and institutions such as Kapoor Pvt Ltd A/c, Booker’s Club A/c etc.
- c. Representative Accounts.
Is creditor a personal account?
A Personal account is a General ledger account connected to all persons like individuals, firms and associations. An example of a Personal Account is a Creditor Account. A Nominal account is a General ledger account pertaining to all income, expenses, losses and gains.
Which is not a personal account?
Correct answers is Drawing Account because drawing is an expense thus it is Nominal Account. Live stock Account is Personal Account because live stock related to animals and are included in personal account.
What is another name for petty cash?
What is another word for petty cash?
| cash | money |
|---|---|
| peanuts | mite |
| shoestring | small change |
| spending money | pocket money |
| pin money | capital |
How many types of petty cash book are there?
two types
What is petty cash book how it is prepared?
To avoid a large number of small payments, a separate cash book is made which is maintained by a petty cashier, who is paid a small amount at the beginning of the period called impress amount. When petty cashier spend the money, he is reimbursed the same amount to make further small expenditure.
