Classification
of Accounts
Alice Williams
Maud Williams High School
CLASSIFICATION OF
ACCOUNTS
Accounts
Impersonal
Nominal
Personal
Real
Natural
Artificial
Representative
Person Account
Person Account
Classification of accounts
• There is a classification for
every thing in accounting.
From classifying
transactions right down to
ledgers and financial
statements.
Accounts can be classified into
three categories
• Nominal
• Personal
• Real
Nominal Accounts
• Are considered as temporary accounts.
• They only last for one accounting period.
• They are balanced off at the end of the
period.
• In the next accounting period they start at a
zero balance.
Examples of Nominal Accounts
• Sales Revenue
• Service Revenue
• Interest Expense
• Supplies Expense
• Utilities Expense
• Wages Expense
Personal Accounts
• are related to persons ,
•
institutions
• companies.
Examples of Personal Accounts
• Bank account,
• Creditors account
• Debtors Account
Real Account
• This type of accounts will
always be apart of a business
books.
• They showed up on the
business balance sheet.
• They show assets, liabilities
and owners equity.
Reference:
• Wood, F., & Robinson, S. I.
(2007). Principles of accounts for the
Caribbean (5th ed.). Harlow, Essex: Pearson
Longman.