Answer Posted / sushant

The business transactions can be grouped under three types of accounts :

Personal accounts
Real accounts
Nominal accounts

Personal Accounts

Personal accounts are the accounts of persons or firms that the business deals with. These are primarily of three types :

Natural person’s account : These are accounts of real persons who transact with the business in various capacities. The proprietor’s account and the accounts of customers are some examples of natural person’s accounts
Artificial person’s accounts : These are accounts of firms and entities that transact with the business. The accounts of a limited companies or banks that are not real persons are the examples of artificial person’s accounts.
Representative personal account : These are accounts that represent certain person or persons. If a business has not paid the rent of a number of shops for the past two months then all landlords are creditors of the business and the amount due to them is recorded under a common head called Rent Outstanding Account. This is a representative personal account. Other examples of representative personal accounts are Interest Outstanding and Interest Paid in Advance accounts.

Real Accounts

Real accounts are the accounts of the properties, assets and possessions of a business. These can be of two types :

Tangible Real accounts: These are accounts of things that can be touched, measured, sold or purchase. Examples of tangible real accounts are land account, furniture account and cash account.

Intangible Real accounts: These are accounts of things that cannot be touched in the physical sense but can be measured in terms of money value. Trademark or patent rights are examples of intangible real accounts.

Nominal Accounts

Nominal accounts are the accounts of each head of expense or income of a business. They are used to define the nature of the transactions; hence, they are also called fictitious accounts. Without nominal accounts, it is very difficult for the management to find out where the money was spent. As these accounts are used to define the nature of the transaction they are nominal accounts.

Certain rules have to be followed for the different accounts to decide which account has to be debited and which has to be credited. It is also important to understand whether the transaction has to be posted n the debit side or the credit side of an account.

What is DECR And for wt it is used?

2100

---

What is the Branch Accountant Responsbilities ?

3601

---

hi.this krishan .i m slect in axis bank for executive. when i sposse to join

2418

---

I am going for interview in Cross domain for Finance & Accounts opening. If any one having any question paper or question that might be asked in interview pls send me on my mail id -ruchi_singh759@rediffmail.com, or here.

6789

---

The partners agreed to take hero honda vehicle of Rams as firms vehicle by giving credit to his capital account. The vehicle was valued for Rs 65000/-Pass necessary entry

2102

---

How do you handle lack of direction or working in chaos

2043

---

Mostly what type of manufactures are coming under TDS and basic rate for each category

1957

---

what is the core accounts

2238

---

How can i get GR form (GR No.) for Exports ? please give me a link of website with steps ?

2623

---

In order to comply with the matching principle, adjustment entries are made at the preparation of ----------

2799

---

Comments Elements in accounting

1809

---

Expand---------EDP

2480

---

what is the difference between accounts manager and finance manager?

2280

---

what is Accounting Standers?

2182

---

Sensitive field have been defined and customized for vendor master data. For which of the following sensitive fields will an update trigger dual control?(any 1 answer) Currency Account group IBAN VENDOR ACCOUNT NUMBER

2280

---