Basic Accounting Terminology

1. Asset:: In a business Assets denote Accounts( Personal or Real) which are capable of providing future benefits. So a Machinery will be a asset as it will give benefit or value to the business in future.

2. Liability: Liabilities are opposite of assets and denotes those accounts (Personal or Real) which will derive benefit from business or will cause the business to give up value. So a Creditor is a liability as business will be required to pay to the creditor in future.

Account Types in Accounting

An Account in book keeping terms signifies a collection of similar transactions so as to enable correct and logical reporting. So if during the year there are 12 transactions relating to property rent, they will be clubbed together in an ACCOUNT named as RENT. This will make possible giving a single view of all the rent and related transactions.

Accounts are usually of following type:

1. Personal Account
2. Impersonal Account

Impersonal Account are next further bifurcated into:
a. Real Account
b. Nominal Account

So if we look at the entire picture, the ACCOUNT tree will look something like this

ACCOUNT
1. Personal Account
2. Impersonal Account
a. Real Account
b. Nominal Account

Personal Account: As the name suggest, personal account usually deals with accounts created for people, organanizations, establishments, governments and so on

Impersonal Account: All accounts other than Personal Accounts will be Impersonal Account.


Real Account: Real Account deals with accounts which have a tangible existence but cannot be classified under Personal Account. Usually Assets and Liabilities are classified as Real Account.

Nominal Account: Accounts created to deal with Expenses/Losses or Income/Gains are classified under Nominal Account

Re-Opening Tutorial in Kolkata

Hi Guys,

After a gap of more than 6 years, here I'm chasing my passion once again. And this time I hope to make it bigger and better.

I'm re-opening my tutorial in Kolkata at the following address and plan to start classes on Accoutancy, Economics and Mathematics for all boards and syallabus. Currently I plan to take in students from Classes IX to XII and would gradually move to higher and advance subjects and standards.

The relevant details of my tutorial are as under:

1. Address - 311/15/3 Prince Anwar Shah Road, Kolkata 700095 Opp Ram Mohan Mission School and Near Kishore Gas Service
2. Contact - @+91-81000-69-810
3. Planned Batch Size - 8 -10 (max)
4. Class Frequency - 2-3 Classes/Week

Planned Launch - 1st Week of April 2012