ACCOUNTS | PERSONAL ACCOUNT | IMPERSONAL ACCOUNT

Classification of accounts

ACCOUNTS

It is a way or method to maintain the all business daily transactions as a record for maintaining its all balance in which include company expanses and income, profit and loss, purchase and sales, etc. That is knows as account.

Types of accounts:

• Personal Account:

These account are those account in which the transaction shall be maintained in between two person to company, one person one bank or one company one company.

Rules:

Cr. - Credit Account

Dr. - Debit Account.

Debit the receiver always Dr.

Credit the given always Cr.

Examples:

Ram sold goods to Mohan.

• Mohan a/c Dr.
• Ram a/c Cr.

Mohan purchase goods from Ram.

• Mohan a/c Dr.
• Ram a/c Cr.

Mohan purchase furniture from Ram.

• Mohan a/c Dr.
• Ram a/c Cr.

Mohan sold goods to Mohan.

• Mohan a/c Dr.
• Ram a/c Cr.

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• Impersonal Account:

These are two type:

1. Real account
2. Nominal account

Real account: These account are those account which have to maintain as the transaction in which we can know that what comes in and what goes out in supplier to customer.

Rules:

What comes in always Dr.

What goes out always Cr.

Purchase always Dr. side.

Sales always Cr. side.

Examples:

Ram sold to Mohan goods for cash.

• Cash a/c Dr.
• Sale a/c Cr.

Mohan purchase furniture from Ram to cash.

• By furniture a/c Dr.
• To cash a/c Cr.

Purchase goods for cash.

• Purchase a/c Dr.
• Cash a/c Cr.