Question

1) Land and Building 2) Sundry Creditors 3) Sundry Debtors 4) Discount Received 5) Interest on Fixed deposit 6) Amit`s Capital 7) Freight 8) Bank Overdraft 9) Cash at Bank 10) Carriage classify into assets, liability,incime. expenditure,capital

Answer 1

ANSWER :

★ The given items are classified into Asset Account, Liability Account, Capital Account, Income Account and Expenditure Account below :-

• 1) Land and Building ➛ Asset Account

• 2) Sundry Creditors ➛ Liability Account

• 3) Sundry Debtors ➛ Asset Account

• 4) Discount Received ➛ Income Account

• 5) Interest on Fixed deposit ➛ Income Account

• 6) Amit's Capital ➛ Capital Account

• 7) Freight ➛ Expenditure Account

• 8) Bank Overdraft ➛ Liability Account

• 9) Cash at Bank ➛ Asset Account

• 10) Carriage ➛ Expenditure Account

_________________________________________________________

KNOW MORE :

❒ The classification of Accounts under American Approach or Modern Approach are as follows :-

• [1] Assets Account : Assets account are the accounts of assets and properties of the business entity. These include land, building, plant, machinery, patents, cash in hand, cash at bank, debtors etc.

• [2] Liability Account : Liabilities accounts are the accounts pertaining to the liabilities of the business entity. These include lenders, creditors, outstanding expenses, bank overdraft etc.

• [3] Capital Account : Capital is the amount with which the business is started. It is the account of the owner who invests money in the business as capital. Owner's Capital as well as Drawings are included in this head of account.

• [4] Revenue / Income Account : Revenue / Income accounts are the accounts of income and gains. These include sales, discount received, interest received, commission received etc.

• [5] Expense / Expenditure Account : Expense /Expenditure accounts are the accounts of expenses incurred and losses suffered by the entity. These include purchases. wages paid, rent paid, depreciation charged etc.