What Is An Account

                                             An Account

In business concerns, numerous transactions take place every day. For example, goods are sold to various customers every day, purchases are made from suppliers, cash is paid to creditors and is recieve from debtors, expences are paid etc. All these transactions should be properly analysed and recorded. Again, the concept of double change in a business transaction should be keep in mind. To record these changes different accounts are maintained in the ledger.

Now what is an account?

              "Accountis the individual record of an asset,
                 a liability, a revenue, an expence or capital 
                                in a summriesd manner."
For example:
        The individual record of cash (an asset) is known as cash account, the indvidual record of purchases is Purchases Account, the indvidual record of capital is Capital Account, the indvidual record of sales is Sales Account.

Ledger accounts:

In the same way there are so many accounts which are opned in the ledger like Salary Account, Machinery Account, Furniture Account, etc. How many accounts there should be in ledger of a business? It depends upon the nature and the                                                         size of the business.