Question

A project on the types of accounts related to goods introduction

Answer 1

Accounting is considered as a system which collects and process financial information of a business . By the help of accounting  its enable to make good decision. The main objectives of accounting are to maintain accounting records , calculate the position of the business and to communicate the information.There  is types of Accounts related to goods.

Purchase A/C

when goods are purchased , instead of debiting goods A/C 'Purchase A/C is debited. Purchase A/C is a nominal Account and while passing a journal entry "purchase A/C"

It should always be debited because of the rules of Debit all expenses and losses.

Sales A/C

When goods are sold , instead of crediting Goods A/C Sales A/C is credited. Sales is nominal Account and while passing journal entry.

Purchase Return A/C

This account is also named as " Return Outward. it is nominal account and should always be credited .

Sales Return A/c

This accounts is also named as "return Inward " . It is a nominal account and should always  be debited.

Stock A/c

In the transaction related to the purchase and sales of goods. It has to be debited. Where a transaction is for cash for credit.

Answer 2

Accounting is a system that takes part in the collection and procession of financial information related to a business .

The prime purposes accounting are: accounting records maintenance, finding out the exact position of the business and transferring the information.

Different types of Accounts related to goods are as follows:

1. Purchase A/C

2. Sales A/C

3. Purchase Return A/C

4. Sales Return A/c

5. Stock A/c