Bill payable is a personal account and only cash and bank accounts are real accounts in accounting.
Yes, a cash account is a real account in accounting. Real accounts represent tangible assets, and cash is considered a tangible asset because it is a physical form of currency.
Drawings in accounting are recorded as a double entry in the cash book. This is a credit to the bank account and a debit to the cash account.
[Debit] Cash account [Credit] bank account
Demand deposits are considered liabilities on the accounting books of a bank. This is because the bank is obligated to repay the deposited funds to the account holders on demand. It is essentially a debt owed by the bank to the account holders.
Nominal accounts
Real account personal account nominal account
see first tell me wat is bank overdraft..... its is real or personal... ans.personal...every bank a/c is personal a/c.. and though bank is payable or receivable its is personal a/c only....
yes
Even if the account is closed, the cash inside of the account is still considered an asset and no accounting entries are necessary. If a new account is opened, the new account is debited the cash balance and the old account is credited.
Debit accounts payableCredit cash / bank
Because these are the only accounts which have real existance like cash account and bank account other accounts are just in books of accounts and no real physical existance.