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There are 3 Types of Accounts:-

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

 

 

 

 

 

 

What is Real Account?

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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

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What is Personal Account?

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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

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What is Nominal Account?

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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

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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 .
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