Nature of Accounts Class 12
Students often have a doubt whether they have to debit or credit a particular account while passing a journal entry. This process becomes easy when they know the nature of Account. They can understand it well with the following list (As per Modern Classification and Traditional Classification of accounts):
Nature of Accounts from Business Point of View
- Cash/Bank A/c - Asset, Real
- Interest on Capital A/c - Nominal
- Interest on Drawings A/c - Nominal
- Partner’s Capital/Current A/c - Capital, Personal
- Profit and Loss Appropriation A/c - Nominal
- Revaluation A/c - Nominal
- Profit and Loss Suspense A/c - Nominal
- Retiring Partner's Loan A/c - Liability, Personal
- Deceased Partner's Executor Account - Liability, Personal
- Realisation A/c - Nominal
- Share Capital A/c - Capital, Personal
- Share Application A/c - Liability, Personal
- Share Allotment A/c - Asset, Personal
- Share First Call A/c - Asset, Personal
- Calls in Arrears A/c - Asset, Personal
- Discount/loss on Issue of Debentures A/c - Nominal
- Securities Premium A/c - Nominal
- Premium on redemption of debentures A/c - Liability, Personal
- Debentures A/c - Liability, Personal
- Interest on Debentures A/c - Nominal
- Calls in Advance A/c - Liability, Personal
- Dividend A/c - Nominal
- Bank A/c - Asset, Real
- Tax A/c - Nominal
- Provision for Taxation A/c - Liability, Personal
- Share Application money pending allotment A/c - Liability, Personal
Nature of Accounts Class 12