Classification of accounts real nominal personal with examples

Book - Keeping and Accountancy

Classification of Account :

                      The ledger accounts may be classified as under :

1) Personal Accounts 

2) Impersonal Accounts :- 

a} Real or Property Accounts 

b} Nominal or Fictitious Accounts

This, Accounts may be of three kinds : 

1] Personal Accounts 

2] Real Accounts

3] Nominal Accounts 

Personal Accounts :-                            These are the accounts of individuals, firms, limited companies, local authorities, associations with whom the businessman deals. A separate account is maintained for every person or firm or company. These accounts may be of creditors, debtors, bankers etc. For recording transactions, these accounts are treated as "Personal Accounts". Personal accounts. In practice, may be of the following types:

Real Accounts :-                      These are the accounts of properties, assets or possessions of the business man. These accounts represent the belongings of the businessman. A separate account is maintained for each class of property or asset. Real accounts may assume the following two forms.

Nominal Accounts :-                           These are the accounts of expenses or losses and gains or incomes. These accounts are called fictitious accounts as they do not represent any tangible asset. They exist only in name and cannot be seen or touched. A separate account is maintained for each head of expense or loss or gain or income. For example, Interest account,commission account discount account, postage and telegrams account, rent account,salaries account, etc. These accounts cannot be seen, touched and hence they are unreal.