There are two approach for classification of accounts.
1. Traditional Approach ( also called British approach).
This is older version of classification of accounts development in England.
2. Morden Approach ( American Approach)
This is a newer version of classification developed in America.
Notes : an account is a place or record where financial information about person,things,services. Or activities are noted.
Artificial personal account does not have any physical substance but it. represents an entity , like bank account , ram and company etc.
Representative personal accounts are outstanding salary, prepaid expenses, provision for bad debts, unearned incomes,and accrued incomes.
Above I gives you approach those helpful to you for classification of accounts.
2. Morden Approach ( American Approach)
Notes : an account is a place or record where financial information about person,things,services. Or activities are noted.
Artificial personal account does not have any physical substance but it. represents an entity , like bank account , ram and company etc.
Representative personal accounts are outstanding salary, prepaid expenses, provision for bad debts, unearned incomes,and accrued incomes.
No comments:
Post a Comment