Question

Explain the types of following accounts:

(1) Navjivan Commerce College Account

(3) Railway freight Account

(5) Dividend Received Account​

Answer 1

ANSWER :

★ Navjivan Commerce College Account

• ✎ According to Traditional Approach or English Approach, Navjivan Commerce College Account is a Personal Account.

• ✎ Personal Accounts are the accounts geads pertaining to persons, firms, companies, organizations, institutions etc.

• ✎ Personal Accounts are further classied into (1) Accounts of Natural Persons, (2) Accounts of Artificial Person and (3) Representative Personal Accounts. On the basis of this classification, Navjivan Commerce College Account is an accounts of Artificial persons.

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★ Railway freight Account

• ✎ According to Traditional Approach or English Approach, Railway freight Account is a Nominal Account.

• ✎ Nominal Accounts are the accounts for recording transactions relating to losses, expenses, incomes and gains. As Railway freight is an expenses, Railway freight Account will be a Nominal Account.

• ✎ According to American Approach or Modern Approach, Railway freight Account is an Expenses Account.

• ✎ Expenses Accounts are the accounts of expenses incurred and losses suffered by an entity. As Railway freight is an expenses, Railway freight Account will be an Expenses Account.

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★ Dividend Received Account

• ✎ According to Traditional Approach or English Approach, Dividend Received Account is a Nominal Account.
• ✎ Nominal Accounts are the accounts for recording transactions relating to losses, expenses, incomes and gains. As Dividend Received is a gain, Dividend Received Account will be a Nominal Account.

• ✎ According to American Approach or Modern Approach, Dividend Received Account is a Revenue Account.

• ✎ Revenue Accounts are the accounts of income and gains obtained by an entity. As Dividend Received is a gain, it will be a Revenue Account.

Answer 2

Answer : 1 ) Personal account

2) Nominal account

3) Nominal account

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