“Golden Rules of Account”
There are main two types of account.
Personal Account & Impersonal Account.
1) Personal Account:-
The account pertaining to an individual, firm, company, local authority, and association with which the business deal is called a personal Account. It is an account of natural person and artificial person (legal person). In artificial person partnership firm, limited company, association, local authority etc. are grouped.
Account Of Creditors, Debtor, Bank A/C, Collage A/C, Hospital’s A/c, club’s A/c are known as personal account.
2) Impersonal Account:-
All accounts other than personal accounts are known as impersonal account. Impersonal accounts are classified as: –
A) Real Account B) Nominal Account
A) Real Account:-
An account pertaining to properties assets owned by the businessman is called real account.
e.g.:-Cash A/C, Furniture A/C, Goods A/C, Stock A/C, Building A/C, Machinery A/C
B) Nominal Account:-
| Personal Account | Real Account | Nominal Account |
| Debit: The Receiver. | Debit: What Comes in | Debit: All Expenses & losses. |
| Credit: The Giver. | Credit: What goes out | Credit: All Income & gains or Profits. |
|
For Example :- Creditors A/c Debtors A/c Bank A/c Collage A/c Hospital’s A/c Firm A/c any Compan |
For Example :-
Cash A/C Furniture A/C Goods A/C Stock A/C Building A/C Machinery A/C Cash A/c Asset A/c |
For Example :-
Rent A/c salaries A/c interest A/c commission All Expenses All Income Losses Gain Profit |
