Question

Under traditional classification, drawings account is classified as:​

Answer 1

Answer:

Traditional approach. According to traditional approach, the accounts are classified into four types – personal accounts, real accounts, nominal accounts, and valuation accounts.

Answer 2

Answer:

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Theoretical Framework of Accounting

Classification of Accounting

We can classify the financial accounts under two types of accounts, one is the Traditional Approach and another one is the Modern Approach. Let us deal here with the traditional approach.

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Classification of Transaction

Classification and Types of Accounts 

We record business transactions in accounts. Thus, an account is an individual and a formal record of a person, firm, company, asset, liability, goods, incomes and expenses. We need to prepare one account for each type of asset, liability, income or expense.

Hence, we record all the transactions related to a particular item in its account. For example, all-cash transactions whether receipts or payments will be recorded in the Cash A/c. After this, we will calculate the balance of Cash A/c.