Classification of Accounts – Modern Approach (Day 10 of 50 Days Accounting Challenge)
Accounting ko samajhne ka sabse strong foundation hota hai –
👉 Classification of Accounts
👉 Debit aur Credit ka logical reason
Agar yeh clear ho gaya, to journal entries, ledger, trial balance sab easy ho jaata hai.
Is blog mein hum Modern Approach of Accounting ko simple Hinglish mein samjhenge –
✔ Logic ke saath
✔ Practical illustration ke saath
✔ December 2025 ke real-life journal entries ke saath
Golden Trick to Remember Classification of Accounts
“ALL LIONS CAN ROAR EASILY”
| Letter | Meaning |
| A | Asset |
| L | Liability |
| C | Capital |
| R | Revenue |
| E | Expense |
👉 Modern accounting mein sirf 5 types ke accounts hote hain.
Modern Approach of Accounting – Core Concept
Modern approach ka base simple hai:
“Increase ya Decrease ko dekho, account ka nature samjho.”
Debit & Credit Rules – Modern Approach
| Account Type | Debit | Credit |
| Assets | Increase | Decrease |
| Expenses | Increase | Decrease |
| Liabilities | Decrease | Increase |
| Capital | Decrease | Increase |
| Revenue / Income | Decrease | Increase |
👉 Yaad rakho:
Assets & Expenses → Debit side strong
Liabilities, Capital & Revenue → Credit side strong
Why Any Account is Debited or Credited? (Logical Reasoning)
1️⃣ Asset Account
Asset matlab jo business ke paas hai.
- Asset badhta hai → Debit
- Asset ghatta hai → Credit
📌 Example: Cash, Furniture, Bank, Machinery
2️⃣ Expense Account
Expense ka matlab business ka kharcha.
- Expense badhta hai → Debit
- Expense ghatta hai → Credit
📌 Example: Salary, Rent, Electricity
3️⃣ Liability Account
Liability matlab business ki zimmedari / obligation.
- Liability badhti hai → Credit
- Liability ghat-ti hai → Debit
📌 Example: Loan, Creditors
4️⃣ Capital Account
Capital owner ka business mein interest.
- Capital increase → Credit
- Capital decrease → Debit
📌 Owner invested more money → Capital ↑ → Credit
5️⃣ Revenue / Income Account
Revenue matlab business ki kamai.
- Income badhti hai → Credit
- Income ghat-ti hai → Debit
📌 Example: Sales, Commission Income
Profit & Loss Account vs Balance Sheet (Conceptual Clarity)
Profit & Loss Account
👉 Performance dikhata hai
- Expenses (Debit side)
- Income (Credit side)
Balance Sheet
👉 Financial position dikhata hai
- Assets (Debit balance)
- Liabilities & Capital (Credit balance)
Detailed Illustration with Journal Entries (December 2025)
Transaction 1: Owner Started Business with Cash
Date: 01-12-2025
Owner invested ₹1,00,000 cash.
| Account | Debit (₹) | Credit (₹) |
| Cash A/c | 1,00,000 | |
| Capital A/c | 1,00,000 |
🧠 Logic:
Cash (Asset) ↑ → Debit
Capital ↑ → Credit
Transaction 2: Purchased Furniture for Cash
Date: 05-12-2025
Furniture purchased worth ₹20,000.
| Account | Debit (₹) | Credit (₹) |
| Furniture A/c | 20,000 | |
| Cash A/c | 20,000 |
🧠 Logic:
Furniture (Asset) ↑ → Debit
Cash (Asset) ↓ → Credit
Transaction 3: Loan Taken from Bank
Date: 10-12-2025
Loan taken ₹50,000.
| Account | Debit (₹) | Credit (₹) |
| Bank / Cash A/c | 50,000 | |
| Bank Loan A/c | 50,000 |
🧠 Logic:
Cash ↑ → Debit
Loan (Liability) ↑ → Credit
Transaction 4: Goods Sold for Cash
Date: 15-12-2025
Goods sold for ₹30,000.
| Account | Debit (₹) | Credit (₹) |
| Cash A/c | 30,000 | |
| Sales A/c | 30,000 |
🧠 Logic:
Cash ↑ → Debit
Sales (Revenue) ↑ → Credit
Transaction 5: Salary Paid
Date: 20-12-2025
Salary paid ₹5,000.
| Account | Debit (₹) | Credit (₹) |
| Salary A/c | 5,000 | |
| Cash A/c | 5,000 |
🧠 Logic:
Salary (Expense) ↑ → Debit
Cash ↓ → Credit
Most Important Exam & Practical Tip
👉 Debit / Credit ratta nahi maarna
👉 Sirf yeh socho:
- Account ka type kya hai?
- Increase ho raha hai ya decrease?
Agar yeh 2 questions ka answer mil gaya, journal entry automatic ban jaayegi.
Conclusion
Modern approach accounting ko logical, practical aur real-life oriented bana deta hai.
Is approach se:
- Journal entries easy ho jaati hain
- GST, Income Tax & Practical accounting strong hoti hai
- Confusion permanently khatam ho jaata hai
