Financial Accounting

6 CHAPTER

Journalizing, Posting and Balancing

MEANING OF AN ACCOUNT

An account is a summary of relevant transactions at one place relating to a particular head. It records not only the amount of transaction but also their effect and direction.

TRADITIONAL CLASSIFICATION OF ACCOUNTS

The classification of accounts according to the Traditional Approach is given below:

Classification of Accounts According to Traditional Approach

ACCOUNTING EQUATION BASED CLASSIFICATION OF ACCOUNTS

The classification of accounts according to Accounting Equation Approach is given below:

Classification of Accounts According to Accounting Equation Approach