Tally

 Types of Accounts

Personal account:       

Personal accounts are the accounts of persons, firms, concerns and institutions which the businessmen deal.

Principles:                                           Debit the receiver

                                                            Credit the giver

Real Account: 

  

    These are the accounts of things, materials, assets & properties. It has physical existence which can be seen & touch.

 Ex. Cash, Sale, Purchase, Furniture, Investment etc.

Principles:                                           Debit what comes in

                                                            Credit what goes out

Nominal account:      

 Nominal account is the account of services received (expenses and Losses) and services given (income and gain)

Ex. Salary, Rent, Wages, Stationery etc.

Principles:                                           Debit all expense/losses

                                                            Credit all income/ gains