KINDS OF ACCOUNTS

All the accounting heads used in an organigational accounting system are divided in to 3 kinds/types.

1. PERSONAL ACCOUNT
2. NOMINAL ACCOUNT
3. REAL ACCOUNT

PERSONAL ACCOUNT : The elements or accounts which represent persons and organigations.

NOMINAL ACCOUNT : The elements are accounts which represent expences, losses, incomes, gains.

REAL ACCOUNT : The elements or aaccounts ehich represent assets. In the initial stages of lwearning accounting, we can assume real account to be those related to tangible aspects.

AN ACCOUNT SHOUID BE ONE OF THE THREE :

Any elements are or accounts used in an organigational accounting system shouid be one these. Thus, we can say that if an account is not real or persoanl it shouid be a nominal account.

Therefore we may also interpret.

• Nominal account as, the accounts other than Personal and Real accounts.
• Real accounts as, The accounts other than Personal and Nominal accounts.
• Personal accounts as, the accounts other than Real and Nominal accounts.