Golden Rules Of Accounting or Types of Accounts :: Personal, Real, Nominal

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