Account Classification

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.