Question

What are the types of Accounts? Give examples.

Answer 1

Account is the summarised record of relevant transactions at one place relating to a particular head.

There are three types of accounts -

1. Personal Account - Personal accounts are related to personal accounts. Examples of personal accounts are Ram, Mohan, Firm, Capital, etc.

2. Real Account - Real Accounts are the accounts which relate to tangible or intangible assets of the firm. Examples of real account are Land and building.

3. Nominal Account - Nominal account is a account which is related to expenses, incomes, gains and losses. Example of such account is Salary acccount, interest account etc.