Tally Prime Full Course Notes

Fundamental of Accounting and Tally Prime Notes

Definition of 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 makin

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:-   Harish Sharma, Modgil 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.

Golden Rules of Accounting

Personal Accounts

The ReceiverDebit (Dr)
The GiverCredit (Cr)

Real Accounts

What comes inDebit (Dr)
What goes outCredit (Cr)

Nominal Accounts

All Expenses or LossesDebit (Dr)
All Income or GainsCredit (Cr)