Answer pls...

 

 

 

Dear friends, we all know that all the accounts can be simply categorized into 5 types. They are Assets, Liabilities, Capital, Expenses/Losses, Revenues/Gains. But i was unable to understand under which category the following accounts fall. So please explain with step by step reason.

1. Drawings   2. Outstanding salary   3. Charity   4. Sales returns

1)Drawings are categorised under capital a/c because the owner is withdrawing his capital in the form of drawing

2)outstanding salary is treated as asset if recievable and liability if payable

3)charity given is treated as expense

4) sales return is loss of revenue