In bookkeeping, an account refers to assets, liabilities, income, expenses, and equity, as represented by individual ledger pages, to which changes in value are chronologically recorded with debit and credit entries. These entries, referred to as postings, become part of a book of final entry or ledger. Examples of common financial accounts are sales, accountsreceivable, mortgages, loans, PP&E, common stock, sales, services, wages and payroll.
A chart of accounts provides a listing of all financial accounts used by particular business, organization, or government agency.
The system of recording, verifying, and reporting such information is called accounting. Practitioners of accounting are called accountants.
Types Of Accounts
There are two type of Accounts--
1. Personal Account
2. Impersonal Account
1. Personal Account-- Those A/c which relate to any person, firm, or organization are known as personal A/c. Ex. Ssbtechcomputer a/c, rakesh a/c, LIC a/c, Bank a/c etc.
- Personal is divided into creditors and debtors.
2. Impersonal Account--Those account which don't relate to an person are known as Impersonal account.
- Impersonal is divided into cash book and general.
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