Types of accounts from the view point of accounting equation

From the viewpoint of accounting Equation accounts can be divided into five categories: The depiction (explanation, description)  about all types of accounts are given in the following:

Types of accounts

1. Asset account: The account kept classifying the transactions for which the asset increase or decrease is called asset account. Example-Cash, land, prepaid rent and so on.
2. Liability account: The account kept classifying the transactions for which the liability increase or decrease is called liability account. Example – Accounts payable, Notes payable, Unearned Revenue, Bank loan etc.
3. Expenditure account: The account kept classifying the transactions for which the liability increase or decrease is called liability account. Example- Accounts payable, Notes payable, Unearned Revenue, Bank loan etc.
4. Expenditure account: The account kept under different heads classifying the various expenditure of a business is called expenditure account. Example-Salary account, Purchase account, Wages account.
5. Income account: The account kept under different heads having the transactions relating to income property, are called income account. Example-Sales, Interest received service Revenue, Commission received etc.
6. Owner’s equity account: The account related with ownership claim over the assets of the organization is called owner’s equity account. Common share, Stock, Capital, Revenue, Retained earnings etc.

Types of accounts from the viewpoint of accounting equation

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