What Is Accounting in TallyPrime ?

What Is Accounting ? Fundamental

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


Personal Account
Real Account
Nominal Account

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.

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.

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

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