Definition of Account in Accounting.

Sir the definition of account in my book is given as :-
ACCOUNT: It is a summarized record of transactions
relating to a particular head at one place. It records not
only the account of transactions but also their effect and
direction.
I want to ask what is meant by the effect & direction of
transactions.

asked Mar 14, 2017 in Terminology in Accounts by cute shanaya (18 points) 378 views

1 Answer

0 votes

                      I hope now the difinition of Account is clear to you.

answered Mar 14, 2017 by jbsclasses (3,971 points)
Sir the page is not displayed completely..
Plz reply soon..
You can see the answer properly on mobile by putting it on auto-rotate, i.e. to see it when the screen is horizontal and not vertical.
Thank you so much sir for your help.
Sir but in the define it is already written that it records
the amount of transaction as well as effect and direction.
I have understood the direction but not effect because what
you are saying as effect is actually the amount of the
transaction.

ACCOUNT: It is a summarized record of transactions relating to a particular head at one place. It records not only the account of transactions but also their effect and direction.

Please read your book carefully, it is 'Account of Transaction' and not 'Amount of Transaction'.  'Account of Transaction' means which is the other account which is being debited or credited.  'Effect' means by what amount the account is being impacted (debited or credited).  'Direction' means whether the account is being increased or decreased (represented through debit/credit).

Sorry sir but I have written it wrong,it was the amount
of transaction. Plz now can you explain.

Look at the ablve picture, it is account and not amount.

Sir but in my book it is written amount and not account.
In that case it is an error in your book.
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