What Is Book- Keeping and accountancy and diagram Classification of Accounts

Book- Keeping and Accountancy

Meaning and Definition:
In simple words, the ‘Book-keeping’ means recording of the business transactions in the books of accounts in a systematic way. All the monetary transactions are recorded datewise for accurate business results from such records at the end of accounting year.
Book-keeping is an art or science of systematic recording, classifying and summarising the financial transactions of business for a particular period, generally one year.

Definition of Book-Keeping
J. R. Batliboi : “Book-keeping is an art of recording business dealings in a set of books.”

Classification of Accounts

   
What Is Book- Keeping and accountancy and diagram Classification of Accounts 2021

Personal Accounts: Dividing By 3 Part 
1) Natural Personal Account
2) Artificial Personal Account
3) Representative Personal Account

1) Natural Personal Account
1. Sunita's A/c
2. Ashok's A/c
3. Suha's A/c

2) Artificial Personal Account
1. Pune Municipal Corporation A/c
2. Radhika Sports Club A/c
3. Bank of India A/c

3) Representative Personal Account
1. Outstanding Expenses A/c
2. Prepaid Expenses A/c
3. Income received in Advance A/c
4. Accrued income / outstanding Income.


Real Account : Real Account Dividing By 2 Part
1) Tangible Real Account
2) Intangible Real Account

1) Tangible Real Account
1. Computer A/c
2. Cash A/c
3. Machinery A/c

2) Intangible Real Account
1. Goodwill A/c
2. Patent A/c
3. Copyrights A/c


Nominal Accounts : Nominal Account Dividing By 2 Part
1) Expenses and Losses
2) Income and Gains

1) Expenses and Losses
1. Stationary A/c
2. Purchase A/c
3. Advertisement A/c

2) Income and Gains
1. Interest Received A/c
2. Discount Received A/c
3. Sales A/c

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