Traditional Classification of Accounts

All transactions are recorded initially in the journal. This is termed as journalizing the entries. Journalizing is done on the basis of debit and credit. For this purpose, accounts are classified into three groups or categories under traditional approach.

Basic Accounting Concepts

Accounting has evolved over a period of several centuries and certain concepts were evolved during the process of evolution of accounting. These are fundamental ideas or basic assumptions in recording transactions. Accounting concepts are studied under two heads.