Home / Journal Entry

1216 Views

Estimated reading time : 24 Minutes

Types of Accounts in Accounting

Arjun EP

Published on: June 16, 2020

In accounting, there are three types of accounts.

They are personal account, real account and nominal account.

PERSONAL ACCOUNT

In this account, we record name of person, company, organization, institutes and firm.

There are three types of persons in accounting.

They are natural person, artificial person and representative person.

Natural person	Amitabh Bachchan, Rajesh Hamal, Fawad Khan, Vipul, Prathit, Aishwarya Rai, Eshna, Manju, etc
Artificial person	Reliance Industries Limited, Dabur Nepal, Delhi University, Tribhuvan University, EP Publication etc.
Representative person	Debtors, creditors etc.

There are two types of persons in personal account.

First is receiver person and second is giver person. According to rule:

In personal account:

Increase or Decrease

Receiver

Giver

Increase debtor

Decrease debtor

Increase creditor

Decrease creditor

REAL ACCOUNT

In real account, we record tangible and non-tangible assets.

Tangible assets are fixed assets and current assets.

Intangible assets are fictitious assets.

Fixed assets	land and building, plant and machinery, furniture and fitting, investment etc.
Current assets	cash, bank (cheque), stock* (inventory), debtors etc.
Fictitious assets	goodwill, trade mark, preliminary expenses etc.

There are two types of real account.

First is comes-in and second is goes-out. According to rule:

In real account:

Increase or Decrease

Comes in

Goes out

Increase asset

Decrease asset

Increase liability

Decrease liability

###########

Click on link for YouTube videos

ACCOUNTING EQUATION http://tiny.cc/c89jkz

BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz

BASIC JOURNAL ENTRIES http://tiny.cc/8aakkz

JOURNAL ENTRY AND LEDGER http://tiny.cc/caakkz

LEDGER http://tiny.cc/haakkz

SUBSIDIARY BOOK http://tiny.cc/399jkz

CASH BOOK http://tiny.cc/889jkz

TRIAL BALANCE & ADJUSTED TRIAL BALANCE http://tiny.cc/c59jkz

BANK RECONCILIATION STATEMENT (BRS) http://tiny.cc/q59jkz

DEPRECIATION http://tiny.cc/ugakkz

FINAL ACCOUNT: CLASS 11 http://tiny.cc/y89jkz

ADJUSTMENT IN FINAL ACCOUNT http://tiny.cc/keakkz

CAPITAL AND REVENUE http://tiny.cc/peakkz

SINGLE ENTRY SYSTEM http://tiny.cc/n19jkz

NON-PROFIT ORGANIZATION (NON-TRADING CONCERN http://tiny.cc/j09jkz

GOVERNMENT ACCOUNTING http://tiny.cc/hcakkz

GOSWARA VOUCHER (JOURNAL VOUCHER) http://tiny.cc/hcakkz

###########

Keep in Mind (KIM)

Stock* or inventories are classified into four groups:

Business started with goods is opening stock.

Purchase goods or stock is purchase.

Sold goods or stock is sales.

Unsold goods or stock is closing stock.

Closing stock of current year becomes opening stock of next year.

NOMINAL ACCOUNT

In nominal account, we record expenses and incomes, profit and loss of organization.

There are three types of heading for expenses.

They are factory expenses, office expenses, selling and distribution expenses.

Expenses	salary, wages, rent, stationery, telephone, internet expenses, insurance etc.
Incomes	commission, interest, dividend, discount, rent received etc.