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.
Example. 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)
Example. Salary, Rent, Wages, Stationery etc.
Principles: 👉Debit all expense/losses
👉Credit all income/ gains
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