QS Study

An Account is a record of increases and decreases in specific asset liability or owner’s equity items.

Types of Accounts: Accounts are of six types.  They are discussed below:

1. Asset Account: Asset is the resource owned by a business.

Example: Cash Account, Land Account, Equipment Account etc.

2. Expense Account: Expense is the cost of asset consumed or service used it the process of earning revenue.

Example: Rent Expense, Salary Expense, Utility Expense etc.

3. Drawing Account: Drawing is the withdrawal o