Classification of Accounts
Classification of Accounts
Personal Account
Personal account relate to an individuals, firms, associates or
companies. These accounts are for creditors and debtors.
Natural Personal
Artificial Personal
Representative
Accounts
Accounts
Personal Accounts
Mr. A A/c
DEF School A/c
Income received in
Mr. B A/c
XYZ Hospital A/c
advance A/c
Mr. C A/c
ABC Charity A/c
Outstanding income A/c
Outstanding expenses
A/c
Expenses
paid
in
advance A/c
Impersonal Account
All accounts other than personal accounts.
Real Accounts
Tangible
Account
Vehicle A/c
Furniture and
Fixture A/c
Building A/c
Intangible
Account
Goodwill A/c
Trade Mark A/c
Patent A/c
Real account does not close at
the end of the accounting year
and relate to one or more future
accounting periods. i.e. accounts
which relates to all assets, all
liabilities and owner’s capital.
This is balance sheets accounts.
For
examples
Machinery,
Buildings
etc.
Permanent
accounts are sometimes called
real account.
Khalfan Shah FCCA, APFA (khashah.mentor@gmail.com)
Imperial Institute of Professional Studies
Nominal Accounts
Expenses &
Losses
Purchases A/c
Salaries A/c
Interest Expense
A/c
Income & Gains
Interest
Income
A/c
Sales A/c
Discount Received
A/c
Nominal account begins each year with
a zero balance and close at the end of
accounting year.
For example income, expenses and
owner’s drawing accounts.
This is profit & loss accounts.
Temporary accounts are sometimes
called nominal account.
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