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If you are anaccountancy student or if you are just getting introduced to the subject, the whole thing can be very perplexing for you, especially because you suddenly need to deal with so many accounts which function in their individual ways. To steer clear of confusion, you can first go through a list of accounts that you’ll have to deal with while solving accounting sums. Once the types of accounts register and their definitions register in your mind appropriately, you’ll feel a little les overwhelmed and a lot more in control.
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What are significant accounts that one must know about:
Accounts in Balance Sheets:
1. Assets:
This is the head where an organization records all the assets (in cash or kind) which they possess. Assets might include cash, inventory, furniture, machinery, land, or amounts which are due to be received from debtors.
2. Liabilities:
These are the accounts which record the payments which are to be made by a company either in cash or in kind.
These are two very basic concepts which every student must be well aware of before they strive to acquire a better understanding of accountancy as a subject.
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