Financial Accounting Basics TermssteemCreated with Sketch.

in pakistan •  5 years ago 

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My Name is Muhammad Zulqarnain and Todays my topic is Education of Accounting.

Business Students

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Accounting Basic Terms

Current Account?

In this case the customer is allowed to deposit or withdraw money as and when he likes. He may thus deposit or withdraw money several times in a day if he likes. Usually the businessmen open this type of account. No interest is allowed by first class banks on current account deposits but some banks do allow interest in case the balance does not fall below a certain minimum limit.

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Saving Account?

It is also called profit and loss account. This account as its name suggests is for those persons who want to make small savings. In this case deposits can be made only up to a certain amount and withdrawals are allowed only twice or thrice a week, not exceeding a certain amount. This type of account is opened by small retailers or mostly by wage-earners and salary-persons. The rate of interest on this type of account depends on the amount of profit earned by the bank. It generally varies between Six % to Nine % per annul.

Fixed Deposit Account?

In this type of account, a certain amount is deposited for a fixed period such as six months, one year or longer. The amount cannot be withdrawn till the expiration of fixed period. The interest allowed on fixed deposit varies with the period for which the deposit is made.

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