Broadly Accounts are classified as
Account Classification: Broadly Accounts are classified as
- Personal - Related with the Persons E.g. Mr. Paul’s A/C account at ABC Org
- Nominal - Pertaining to Income and Expenses E.g. Interest, Wages etc.
- Real - Pertaining to things / Properties E.g. Cash , building, Machinery etc .
General Accounting Rules for Every Account
- For Real A/C – Debit that whatever Comes in , Credit whatever goes out.
- For Nominal A/C– Debit expenses, losses and credit incomes and profits.
- For Personal A/C- Debit the Receiver, Credit the Giver.