What is Accounting in Tally Prime?

Definition of Accounting

Accounting is a systematic recording day to day business transaction is called as accounting.

Accounting is the process of identifying, recording, classifying and reporting information on financial transactions in a systematic manner for the purpose of providing financial information for decision making.

Types of Accounts

There are basically three types of Accounts maintained for transactions

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

1. Personal Account: Any individual person or any firms or any company or a bank is considered in a Personal account.

For example:-

  • Rajesh Singh 
  • Muna Enterprise 
  • Wipro Pvt Ltd 
  • PNB Bank 
  • Capital etc.

2. Real Account: Account of any physical things. The cash account or goods account are examples of Real account.

For example:-

  • Cash 
  • Land 
  • Building 
  • Furniture
  • Computer etc.

3. Nominal Account: Account of any invisible things that means that things are in terms of cash are examples of Nominal account.

For example:- 

  • Discount 
  • Commission 
  • Salary 
  • wages 
  • Freight etc.

Rules of Accounting