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What do you understand by the term Classification of Accounts?
The classification of accounts refers to the different transaction which is necessary to maintain at a single place. It maintains the amounts of asset, liabilities, equity holder, debit and credit of a company. Along with that, amounts for transactions are also come and it is also necessary to know depicts and its direction. Classification of accounts is broadly separated into two main parts as Classification according to traditional approaches and classification according to accounting equation.
In traditional Approach, the classifications are Personal Account, Real Account and Nominal Account. Furthermore, personal account has three different parts as natural personal account, Artificial Personal account and Representative Personal account. But, in case of Accounting equation the classification of accounts is done in five different categories. These are Assets A/C, Liabilities A/c, Capital Account Revenue Account and Expense Account. Thus, our team members of Classification of Accounts Assignment Help always focus on every term and students also need to know all concepts before they start their assignments.
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