spot_img

Types of Accounts – Accounting and Finance for Banking Study Notes 2022

Accounting and Finance for Banking Study Notes | JAIIB AFB Notes PDF

Types of Accounts:

An accountant records a transaction in his book of accounts, first he must understand which transaction should be debited and which should be credited. To perform such accounting transactions, a clear idea of types of accounts and classification of accounts is very important.

Full Course Videos in Hindi English
Check Here
————————————————————-
jaiib ppb short notes part 1
Check Here
————————————————————-
jaiib exam free study material
Check here
————————————————————-
jaiib study material pdf notes 2023
Get Tests Here
————————————————————-
how to prepare for ppb
Check Here

 

Also See: DRI Advances | GOI Advances Scheme

Types of Accounts

Following are the types and classification of accounts:

  1. Personal accounts
  2. Real Accounts
  3. Nominal Accounts

I. Personal Accounts

Those accounts which are related to individuals, persons and firms are called personal accounts. Personal accounts can be further divided in to:

  1. Natural Person’s Personal Accounts
  2. Artificial Persons Accounts
  3. Representative Personal Accounts

1. Natural Person’s Personal Accounts

These accounts are related to human beings, physically we can touch them. They can sell or buy product and we can we can also do the same in response. Such accounts are necessary to track to those amounts which are payable or receivable.

For Example:  Baltiwala Accounts, Eraj Enterprises Accounts

2. Artificial Persons Accounts

These are not living or human beings but have a separate entity as per the law. Such business can be operated by Board of Governors, Head of Departments, Principles etc.

For Example: Standard Chartered Bank, Club or Society Accounts

Related Links:

PPB AFB LRAB IIBF COURSES
JAIIB PPB Syllabus 2022 JAIIB AFB Syllabus 2022 JAIIB LRAB Syllabus 2022 JAIIB/CAIIB Full Video Course
JAIIB PPB Study Material PDF 2022 JAIIB AFB Study Material PDF 2022 JAIIB LRAB Study Material PDF 2022
JAIIB PPB Notes PDF 2022 JAIIB AFB Notes PDF 2022 JAIIB LRAB Notes PDF 2022
JAIIB PPB Mock Test PDF 2022 JAIIB AFB Mock Test PDF 2022 JAIIB LRAB Mock Test PDF 2022

3. Representative Personal Accounts

When an account represents certain person(s) is called representative personal accounts. These are

i. Outstanding Expense Account

Such accounts are created when we are bound to pay expense because we have got some services from other individuals and firms. In the balance sheet the amount will be appeared on the liability side. These accounts are also known as liability accounts.

For Example: Outstanding courier charges, salaries, communication charges.

ii. Advance Expense Accounts

In this case expenses are paid in advance but in reward we have not yet get the services. Here we will create an advance payment account in the name of those persons to whom advances are paid.

For Example: Advance Mobile Charges, Advance Salary etc.

iii. Outstanding Income Account

In simple words the amount which is receivable and the services are already provided.

For Example. Eraj Enterprises provided his services to Singer Group, but Eraj Enterprises have not yet received in income against services provided. EE will open outstanding income account in the name of Singer Group, which will show accounts receivable from Singer Group.

iv. Advance income Account.

Here earnings are received before the services are provided to the party.

For Example: A lawyer received his fee in advance but he has not presented in the court for hearing.

II. Real Accounts

Real accounts represent the assets both tangible and intangible.

For Example: Bonds purchased property and building, cash in hand etc.

III. Nominal Accounts

These accounts have no existence in real life but just a name in the books of account. These are also called proprietary because they are related to business proprietor.

For Example: Salary Accounts, Discount Accounts, Rent Accounts etc.

 

JAIIB SYLLABUS PRIORITY

PPB Syllabus Priority 2022
LRAB Syllabus Priority 2022
AFB Syllabus Priority 2022

LEAVE A REPLY

Please enter your comment!
Please enter your name here

🤩 🥳 JAIIB NEW BATCH START 🥳 🤩spot_img
🤩 🥳 JAIIB CAIIB CLASSES 🥳 🤩spot_img

POPULAR POSTS

RELATED ARTICLES

Continue to the category

Certified Credit Professional Free Pdf Study Material

Introduction   Both organisations and people must have a solid understanding of credit management in the fast-paced financial environment of today. In order to keep a...

Risk Management Numerical On Foreign Exchange

What is Foreign Exchange? Foreign Exchange or FX, is an investment market that majority of individuals can understand but handful can truly master. It is...

JAIIB 2023: Eligibility, Syllabus and Registration

Introduction to JAIIB 2023 Exam Junior Associates of the Indian Institute of Bankers is referred to as JAIIB. It is a flagship course provided by...

Small Finance Banks: Free PDF Study Material

Small Finance Banks: A Detailed Overview  Small Finance Banks (SFBs) were brought in to the Indian banking structure in 2015 to meet the unique needs...