Question

classify the following as per American system of accounting
machinary
capital
Goodwill
salaries
furniture
commission
creditors
outstanding
drawing
purchase
discont​

Answer 1

Answer:

As per American approach accounts of a business can classified into five heads. They are :- 1. Assets accounts. 2. Liabilities accounts. 3. Capital accounts. 4. Income accounts. 5. Expenses accounts.

thus it is classified as follows

machinary - asset accounts

capital - capital account

Goodwill - asset

salaries - expense

furniture - asset

commission - income ( if received )

creditors - liability

outstanding - liability

drawing - expense

purchase - expense

discount - income (if received )

Answer 2

Answer:

1. Machinery - Asset account

2. Capital - Capital account

3.Goodwill - Asset account

4. Salaries - Expenses and losses account

5. Furniture - Assets account

6. Commission - Income and Gains account

7. Creditors - Liability account

8. Outstanding - Liability account

9. Drawing - Expenses and losses account

10. Purchase - Expenses and losses account

11. Discount - Income and gain account