Types of Accounts

Basically accounts are three types,
 Personal account: Accounts which show transactions with persons are called personal account. It includes accounts in the name of persons, firms, companies.
In this: Debit the reciver
Credit the giver.
For example: - Naresh a/c, Naresh&co a/c etc…
 Real account: Accounts relating to assets is known as real accounts. A separate account is maintained for each asset owned by the business.
In this: Debit what comes in
Credit what goes out
For example: - Cash a/c, Machinary a/c etc…
 Nominal account: Accounts relating to expenses, losses, incomes and gains are known as nominal account.
In this: Debit expenses and loses
Credit incomes and gains
For example: - Wages a/c, Salaries a/c, commission recived a/c, etc.

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