Real Personal and Nominal-Classification of Accounts

An account is a summarized record of business transactions and account can be classified into 3 types

A. Personal Account

B. Real Accounts

C. Nominal Account

A. Personal Accounts – The accounts which relate to an individual, firm, company are called personal accounts. It can be classified into three categories –
1. Natural Personal account- It refers to the accounts of human beings. For example tom account, Stephen account etc…

2. Artificial Personal account – It refers to accounts that do not have physical existence like accounts of companies for example Microsoft account, Google account etc….

3. Representative Personal account – It refers those account which represents a particular group of persons so prepaid insurance account or unearned commission account are some of its examples.

B. Real Accounts – The accounts of all things whose value can be measured in terms of money are known as real accounts. They are of 2 types

1. Tangible Real account – These are the account of those things which can be touched, felt or measured. Examples of it include stock account, building account, furniture account etc….

2. Intangible Real account – These accounts represents those things which cannot be touched, felt or measured but their value can be measure in terms of money. Goodwill, patent, trademark are some of the examples of intangible account.

C. Nominal Account – Nominal account include the accounts of all expenses and incomes. For example commission earned, rent paid, bad debts, rent received etc…..

11 comments… add one
  • leonard mugova

    easy to understand good accounting notes

  • Praveena A.C

    Hai, This is Good Description about the Classifications of Accounts. and gave the certain Rules of Each Accounts.
    WE Need Basic Idea of Accounts with meaning, Definitions, Used Terminology etc.

  • jit soni

    It is good description about the classifications of Account & easy to understand.

  • Bahati

    In which classification does capital belong?

    • Vinish Parikh

      Capital is a personal account

  • ben

    where do revenues,expenditures,liabilities and assets belong

  • felicia

    it is a very nice way of classification of account but where does drawings fall in to

  • gia

    whai is goodwill a/c

  • vishal kherajani

    goodwill a/c is an prestigous value of

  • vishal kherajani

    Drawing falls into personal A/C felicia

  • Arun Sharma


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