What is real nominal and personal accounts with examples?

What is real nominal and personal accounts with examples?

An example of a Real Account is a Bank Account. A Personal account is a General ledger account connected to all persons like individuals, firms and associations. An example of a Personal Account is a Creditor Account. A Nominal account is a General ledger account pertaining to all income, expenses, losses and gains.

What is your personal account?

A personal account is an account for use by an individual for that person’s own needs. It is a relative term to differentiate them from those accounts for business or corporate use.

How many types of personal account are there?

Real, Personal and Nominal accounts are the traditional classification of account types in accounting, however, personal accounts are further distinguished under three categories such as Natural, Artificial, and Representative.

What is the name of personal account?

Personal Account. As the name suggests, Personal Accounts are the ones that are related with individuals, companies, firms, group of associations etc. These persons could include natural persons, artificial persons or representative persons.

What is nominal account example?

Nominal accounts are typically associated with the income statement, and so are used to record revenues, expenses, gains, and losses. Examples of these accounts are product revenue, the cost of goods sold, compensation expense, and utilities expense.

What is example of real account?

Examples of Real Accounts The real accounts are the balance sheet accounts which include the following: Asset accounts (cash, accounts receivable, buildings, etc.) Liability accounts (notes payable, accounts payable, wages payable, etc.) Stockholders’ equity accounts (common stock, retained earnings, etc.)