Question

In how many
many divisions is goods
accounts divided? write the names?​

Answer 1

Answer:

Practically, ledger can only be divided into two types. One is personal and other is impersonal. Personal is divided into creditors and debtors. While impersonal is divided into cash book and general.

Personal ledger

There is mainly two types of ledger in the books of accounting. We will start with the personal. This, as the name suggests, is more personal and related to people.

Also, here you will find all the details related to the transactions about the person who is related to units of accounting.

Furthermore, these transactions are also recorded and that is why this is called personal. It is described earlier is further divided into debtors and creditors.

Answer 2

The goods accounts are divided into 3 types

1. Real Account
2. Personal Account
3. Nominal Account

PERSONAL ACCOUNT:- These accounts are related to persons.

• These persons may be natural persons like Zain's account, Hibah's account, Talha's account, etc.
• Or these can be artificial persons like partnership firms, companies, public corporations, an association of persons, etc.
• The rule for this Account is Debit the receiver. Credit the Giver.

REAL ACCOUNT:- These accounts are related to assets or liabilities.

• They are further classified as Tangible real accounts and Intangible real accounts.
• Tangible real accounts include assets that can be touched. Example: Building a/c
• Intangible real accounts include assets that cannot be touched. They are measured in terms of money. Example: Goodwill.
• Real Account Rules is Debit what comes into the business. Credit what goes out of business.

NOMINAL ACCOUNT:- These accounts are related to income or gains and expenses or losses.

• When an entity pays any salary or commission or any other expenses they will be debited whenever they are paid by the entity.
• When an entity receives any interest or discounts they are credited whenever they are received by the entity.
• Nominal Account Rules is Debit all the expenses and losses of the business. Credit the incomes and gains of business.

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