What do you mean by real account

It becomes easier to do journal entry because of the rule of debit what comes in and credits what goes out as it clarifies on which side, i.E., on the debit side or the credit side is needed to be posted.
It provides the closing balance of the assets and the liabilities that are reported in the balance sheet and then carried forward in the next accounting year.

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Real Accounts, what do you mean by real account.

Real accounts are the accounts that do not close its balances at the end of the financial year but the same retains and carries forward its closing balance from one accounting year to another and so on. In other words, the closing balance of these accounts in one accounting year becomes the opening balance of the succeeding accounting year. These accounts are also called as permanent accounts.

Real accounts

Real accounts definition

Real accounts are the accounts that do not close its balances at the end of the financial year but the same retains and carries forward its closing balance from one accounting year to another and so on. In other words, the closing balance of these accounts in one accounting year becomes the opening balance of the succeeding accounting year. These accounts are also called as permanent accounts.

The golden rule that applies to a real account is that the organization should debit what is coming in the organization and credit the items that are going out of the organization.

Examples of real accounts

The following are the items that are present in the financial statement of the company that is considered to be examples.

#1 – assets

Any resource of the business organization which is owned by the organization and has a monetary value that can help to generate revenue and is also available to meet the liabilities of the organization are the assets of the business. The assets are further classified into two different categories which are as follows:

Tangible assets: the assets that can be seen or touched are considered tangible assets. The example of the tangible assets includes cash, furniture, inventory, building, machinery, etc.

Intangible assets: the different assets that cannot be felt or touched are considered as intangible assets. Examples of intangible assets include patents, goodwill or trademark, etc.

#2 – liabilities

These are the legal, financial obligations that an organization owes to someone else. Examples of liabilities are loans payable, accounts payable, which include creditors, bills payable, etc.

#3 – stockholder’s equity

Shareholders equity is the value of assets that are available for the shareholders of the company after the payment of the due liability. The examples of the same are retained earnings, common stock, etc.

Journal entries of real accounts

Let’s take the example of mr. X, who has a business in the purchase and sale of the different mobile phones in the area where its business is situated. In the business, he purchased furniture, having a value of $5,000 by paying cash for the same. Analyze the same considering the real accounts.

In the case of the above example, the journal entry for the transaction in the books of accounts of mr. X will be as follows:

Particulars	amount
furniture A/C …..Dr	$5,000
to cash A/C	$5,000

In the above journal entry, there is an interaction between two different types of assets, i.E., furniture and the cash account, which are classified as the real accounts. Firstly, the furniture account is debited as per the rule, i.E., debit what comes in, and the cash account is credited as per the rule credit what goes out. Both are reported in the balance sheet of the company.

Advantages

The advantages are as follows:

It becomes easier to do journal entry because of the rule of debit what comes in and credits what goes out as it clarifies on which side, i.E., on the debit side or the credit side is needed to be posted.

It provides the closing balance of the assets and the liabilities that are reported in the balance sheet and then carried forward in the next accounting year.

Disadvantages

The disadvantages are as follows:

If there is an error in the closing balance of the real accounts in any accounting year, then in the next accounting year also the same error gets carried forward. It happens as the closing balance of one accounting year is the opening balance of the succeeding accounting year.

Important points

The different important points are as follows:

These accounts are shown on the balance sheet of the organization, which reports the stakeholder’s equity, liabilities, and the assets of the business.

The word ‘real’ here refers to the permanent and perpetual nature of these accounts. These accounts remain active from the beginning of the business until its end.

The golden rule that is applicable is that the organization should debit what is coming in the organization and credit the items that are going out of the organization.

Conclusion

Real accounts, also known as the permanent accounts, are the accounts balances that are carried from one financial year to another accounting year. I.E., the closing balance in one accounting year of the company becomes the opening balance of the succeeding accounting year in its balance sheet. Examples include the assets, liabilities, and the stockholder’s equity. It remains active from the beginning of the business until its end. It is possible to have a temporary zero balance in some of these accounts.

Financial account and how it works

When a rise in the financial account is bad

Endai hued / getty images

The financial account is a measurement of increases or decreases in international ownership of assets. The owners can be individuals, businesses, the government, or its central bank. The assets include direct investments, securities like stocks and bonds, and commodities such as gold and hard currency.

The financial account reports on the change in total international assets held. You can find out if the number of assets held increased or decreased. It does not tell you how much in total assets is currently being held.

The financial account is part of a country's balance of payments. The other two parts are the capital account and the current account. The capital account measures financial transactions that don't affect income, production, or savings. Examples include international transfers of drilling rights, trademarks, and copyrights. The current account measures international trade of goods and services plus net income and transfer payments.

Key takeaways

The financial account reports foreign ownership of domestic assets and domestic ownership of foreign assets.

If it increases, that means foreign money is flowing into the country.

If it decreases, the country's money is flowing into foreign markets.

The financial account is part of the balance of payments. The other two parts are the capital account and the current account.

The two subaccounts of the financial account

The financial account has two main subaccounts. The first is domestic ownership of foreign assets. It measures money flowing out of the country to purchase foreign assets. If this increases, it subtracts from the financial account.

The second subaccount is foreign ownership of domestic assets. It measures money flowing into the country to pay for the asset. If this increases, it adds to a country's financial account.

The financial account components are similar in each subaccount. the only difference is whether the asset is owned by someone in the country or a foreigner.

Domestic ownership of foreign assets

This subaccount is further divided into three types of ownership: private, government, and central bank reserves. No matter which entity owns the foreign asset, increases subtract from the financial account.

Private owners can be either individuals or businesses. Their assets include:

Deposits at foreign banks

Loans to foreigners

Securities of foreign-owned companies

Direct investments made in foreign countries

Commodities, such as gold, held in other countries

Government owners can be at the federal, state, or local level. Most foreign assets are owned by the federal government. Its assets can include all of the above, but most are gold and foreign currencies held in reserve. This component also includes the government's reserve position in the international monetary fund.

The nation's central bank can own all of the above except for the reserve position in the IMF. Also, it owns currency swaps with other central banks.

Foreign ownership of domestic assets

This subaccount is further divided into two types of ownership: private and foreign official assets. When foreigners increase their ownership of a country's assets, it adds to the financial account.

These domestic assets include:

Deposits owned by foreigners held at the country's banks.

Loans made by foreign banks to domestic banks.

Foreign private purchases of a country's government bonds, such as U.S. Treasury notes.

Corporate securities, such as stocks and bonds, owned by foreigners.

Foreign direct investment, such as reinvested earnings, equities, and debt.

Other debts owed to foreigners.

Hard assets, such as gold and other commodities.

The country's currency.

Foreign official assets include:

Assets mentioned above that are held by foreign governments or foreign central banks.

Net shipments of the country's currency to foreign governments or foreign central banks.

The financial accounts measure the change in international ownership of assets. This should not be confused with the income, such as interest and dividends, that is paid out on the assets owned. That is measured by the current account.

The financial account is part of the balance of payments

The financial account is a large component of the balance of payments. It adds to the balance of payments when it's positive, or when foreign money is flowing into the country to purchase assets. It subtracts from the balance of payments when domestic money is flowing out of the country to purchase foreign assets.

If the financial account runs a large enough surplus, it can help offset a trade deficit. That's not a good thing.

If the financial account offsets the trade deficit, it means the country is selling off its assets to pay for purchases of foreign goods and services. That's like selling off your land to pay for groceries. You would be better off investing in that land by farming it to grow your food. It’s not sustainable to sell off all your assets for something consumable.

How to get verified on instagram in 6 simple steps

Want to know how to get verified on instagram? There are six simple steps to submit an application and prove your noteworthiness.

If you want to know how to get verified on instagram, you’ve come to the right place. In this guide we’ll tell you how to apply for instagram verification (that’s the easy part) and provide some tips to help you qualify (that’s the hard part).

Let’s start with the easy part.

Bonus: 14 time-saving hacks for instagram power users . Get the list of secret shortcuts hootsuite’s own social media team uses to create thumb-stopping content.

What does instagram verification mean?

Instagram verification is how you prove that your instagram account is the authentic presence of a notable public figure, celebrity or global brand.

You’ve probably seen plenty of verification badges around. As with twitter, facebook and, yes, tinder, the little blue checkmarks are meant to indicate that the platform has confirmed the account in question is trustworthy, or at least they are who they say they are.

These badges are designed to make the real accounts stand out, so that instagram users can be sure they’re following the right person or brand. They’re easy to spot in search results and on profiles, and they convey authority.

It’s easy to see why verification badges are also a coveted status symbol. They’re rare, and exclusivity lends a certain amount of prestige—which may or may not translate to better engagement.

That said, instagram is clear that verified accounts (just like business accounts) don’t get special treatment from the instagram algorithm. In other words: if it is true that verified accounts earn higher engagement on average, it’s because they’re posting great content that resonates with their audience.

Who is eligible to be instagram verified?

Anyone can apply to get verified on instagram. However, instagram is notoriously picky (and in many ways mysterious) about who actually gets verified. So, if you’re running an account that’s right on the cusp of “notable,” how do you know if you meet the criteria?

Just because you have a blue checkmark on twitter or facebook, for instance, doesn’t guarantee you’ll get one on instagram.

Instagram is blunt, saying that “only some public figures, celebrities, and brands have verified badges on instagram.” in other words: “only accounts with a high likelihood of being impersonated.”

Here is what we do know about eligibility.

First, you must adhere to the network’s terms of service and community guidelines. On top of that, your account must meet each of these criteria:

Authentic: are you a real person, registered business, or brand? You cannot be a meme page or a fan account.

Unique: only one account per person or business can get instagram verified, with exceptions for language-specific accounts.

Public: private instagram accounts do not qualify for verification.

Complete: do you have a complete bio, profile photo, and at least one post?

Notable: this is where things get subjective, but instagram defines a notable name as one that is “well-known” and “highly searched for.”

If you’re relatively confident you meet these criteria, or you just feel like rolling the dice, it’s time to go ahead and verify your instagram account.

How to apply to get verified on instagram: 6 steps

Getting verified on instagram is actually quite a simple process:

Go to your profile and tap the hamburger icon in the top right corner

Tap settings

Tap account

Tap request verification

Fill in the application form.
- Your legal name
- Your “known as” or working name (if applicable)
- Select your category or industry (for example: blogger/influencer, sports, news/media, business/brand/organization, etc.)
- You also need to submit a photo of your official government ID. For individuals, that could be a driver’s license or passport. For businesses, a utility bill, your articles of incorporation, or tax filings will do.

Tap send.

According to instagram, after their team reviews your application, you’ll receive a response in your notifications tab. Because of historical and ongoing issues with scammers, instagram is very clear that they will never email you, ask for money, or otherwise reach out.

Within a few days or a week, you’ll receive a direct yes or no. No feedback or explanation.

This is what a no looks like:

And here’s a yes, break out the bubbly:

Tips to get verified on instagram

So, yes, anyone can apply for verification on instagram. But actually getting approved is a lot tougher.

We’ve gone ahead and compiled all the best practices that will maximize your chances of success as you move forward with your quest to prove your brand’s noteworthiness.

Don’t try to buy a verification badge

We’ll get this one out of the way first: that guy in your comments who says his friend works for instagram? Please do not give him money.

Same goes for any third-party app or random account that offers “full refunds.”

Same goes for an account that dms you because they want to sell you their badge because they “don’t need it anymore.”

Instagram scammers know that people and businesses feel outsized emotions about the blue checkmark, and some are pretty effective at appearing legit, so stay on your guard. And remember that instagram will never request payment, and will never contact you.

Tl;dr: the only way to get verified is through the official form, unless you are jennifer aniston (in which case, scroll down to tip #7: work with an agency or publicist, or maybe stop reading this article entirely because you’re doing great!).

Bonus: 14 time-saving hacks for instagram power users . Get the list of secret shortcuts hootsuite’s own social media team uses to create thumb-stopping content.

Monitor for impostor accounts

If you’re struggling with persistent unauthorized, fake, or fan accounts impersonating your brand, then we have good news for you. You’re a prime candidate for verification on instagram. After all, distinguishing real accounts from fake ones is verification’s stated purpose.

Your annual social media audit should make it clear whether impostor accounts are a problem for you. You’ll want to monitor and document these accounts using a social media monitoring tool like zerofox’s hootsuite integration.

Here’s a quick tutorial on how to use zerofox to get automatically notified about impostor accounts (and other scammy activity):

Get more (real) followers

Look, we don’t have the numbers but it honestly feels sometimes like you need a ridiculous number of followers in order to get verified. There is absolutely no evidence that this is a real rule, but—it can’t hurt? Or maybe correlation does not imply causation after all?

Actually, what is more likely is that as people or brands get more noteworthy on and off instagram, follower counts rise alongside.

If you want to hedge your bets and play it both ways—chicken and egg—here’s some inspiration for how to get more instagram followers.

Pro tip: just don’t try to take a shortcut and buy your instagram followers. (plus, breaking the community guidelines and then asking instagram to examine your account is a very effective way to get your account shut down.)

Delete any cross-platform links in your bio

In what some might call a slightly petty move (we would never dare), instagram insists that verified accounts can’t have so-called “add me” links to other social media services in their instagram profiles. You can include links to your website, landing pages, or other online properties, just definitely don’t link to your youtube or twitter account.

On the other hand, if you have a blue checkmark on your facebook profile but not on your instagram account, instagram does explicitly encourage you to link to your instagram account from your facebook page to help prove your authenticity.

Be highly-searched for

Social media is all about serendipitous, organic discovery (this is what the instagram explore page is for, anyway—and making it big there can have a real impact on your engagement and follower count).

But when it comes to verification, instagram wants to know if people care about you enough to tear themselves away from the seductions of the feed and spontaneously type your name into the search bar.

While instagram doesn’t provide analytics on this data, we’d put money on the fact that instagram’s verification team does have access, and will check up on how often users are searching for you. Which leads us to our next point…

Apply when your name is in the news

Google yourself. Has your brand been featured in multiple news sources? Did a recent press release or white paper get picked up? Do you have a sound bite or a profile in a major international publication? Paid or promotional content definitely does not count.

If PR hasn’t been a priority for your brand thus far, you might have a more difficult time proving how “notable” you are. Especially because there’s no place to submit your proof: instagram does its own research, so it’s up to you to make sure your news is above the fold and impossible to ignore.

If you’ve recently experienced a windfall of attention, or you’re planning a big announcement, think about capitalizing on it and applying for that checkmark while your name is hot.

Work with an agency or publicist

If you have the budget and the ambition, hire a reputable digital agency that has access to facebook’s media partner support tools. Your publicist or agent will be able to submit requests to claim usernames, merge accounts, and get accounts verified through their industry-only portal.

Is verification guaranteed? Of course not. But a request from an industry professional through the media partner support panel carries more weight and distinguishes you from the crowd.

Be honest

This tip should be a no-brainer, but because the consequences are dire we feel compelled to highlight it. In your application to be verified, you have to be truthful above all else.

Use your real name. Choose an appropriate category. Definitely don’t falsify any government documents.

If you stretch the truth anywhere in your application, instagram says that it will not only deny your request, but it may delete your account as well.

Make sure you profile and bio are complete and effective

Instagram’s listed requirements for verification (a bio, a profile pic and one post? Really?) are a low bar. You don’t just want to meet it. You want to hurtle over it.

Optimizing your instagram bio will not just impress the verification team when they come to check you out, but can pay ongoing dividends in the form of new followers and conversions.

If you’re turned down the first time, try again

If, after all your hard work, instagram comes back with a rejection, embrace the opportunity to zero in on your goals and redouble your efforts.

Hone your instagram strategy, build a dedicated following, and earn buzz off the platform as well.

And then, whether you wait the 30 required days or spend a few fiscal quarters hitting your kpis, you can apply again.

So, let's see, what we have: guide to what is real accounts & it's definition. Here we discuss components of real accounts along with an example, advantages, and disadvantages. At what do you mean by real account