P1 C1 Accounting and Its Terminology — Account STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceAccountP1 C1 Accounting and Its Terminology2 Marks
Question
Explain the technical term : Account
✓
Answer
Account means a systematic accounting summary which shows the transactions of specific period for goods, assets, persons, incomes and expenses. In the account, any one effect of transaction — debit or credit — is passed. Moreover to find the difference between the totals of both the sides, which is also known as balance of that account, is also included. Illustration: In each transaction minimum two accounts are effected. e.g., Goods of $9,000$ sold to Manas for cash. Here two accounts are effected:
$(1)$ Cash account and
$(2)$ Goods (Sales) account. In short, to distinguish some specific class of transactions from other transactions of business, a systematic summary of the same is prepared which is known as an account.
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