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There are 3 Types of Accounts:-

  1. Real Account
  2. Personal Account
  3. Nominal Account







What is Real Account?


All assets of a firm, which are tangible or intangible, full under the category “Real Account”.

Tangible Real Account  , Intangible Real Account

Rule :-     Debit what comes in

Credit what goes out


What is Personal Account?


These are accounts are related to individual, firms, companies etc. A few example of personal accounts included debtors, creditors, banks, Outstanding & Prepaid Accounts.

Natural Personal, Artificial Personal Accounts

Rule :-      Debit the receiver

Credit the giver


What is Nominal Account?


Accounts which are related to expense losses incomes or gains are called Nominal Accounts “Existing in name only”

Purchase Account, Sale Account, Commission Received Account

Rule :-      Debit all expenses and losses

Credit All incomes & gains


types of accounts.jpg

  1. Accounts and Finance
  2. Accounts Theory
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .