TYPES OF ACCOUNTS AND RULES OF JOURNAL ENTRY

TYPES OF ACCOUNTS

There are three types of accounts :-

I.            Personal Account: The account which is related to any person, firm, company, corporation, educational institutions etc. are called Personal Account.

Personal account can be divided into three parts:

Natural Personal  Account	Artificial Personal Account	Representative Personal Account
Ram’s A/c Mohan’s A/c Capital A/c Drawing A/c Debtor’s A/c Creditor’s A/c	A/c of Sahityabhavan A/c of Ganesh inter college A/c of P.N.B. A/c of Indian Life Insurance Premium	Outstanding A/c Accrued income A/c Prepaid expenses A/c Unaccrued income A/c

II.            Real Account: The account which is related to any assets is called Real Account.

Tangible Real Account	Intangible Real Account
Machinery A/c Furniture A/c Cash A/c Goods A/c Purchases A/c Sales A/c Purchases Returns A/c Sales Returns A/c Stock A/c	Goodwill A/c Patents A/c Copyright A/c etc.

III.            Nominal Account: The account which is related to any expenses, losses, incomes or gains is called Nominal Account.

Expenses Accounts	Income Accounts
Rent A/c Discount A/c Interest A/c Commission A/c Salary A/c Carriage A/c Bad Debts A/c etc.	Rent Received A/c Discount Received A/c Interest Received A/c Commission Received A/c

RULES OF JOURNAL ENTRY

1.  Personal Account:

 DEBIT- THE RECEIVER & CREDIT- THE GIVER

2.  Real Account:

 DEBIT-WHAT COMES IN & CREDIT-WHAT GOES OUT 

3.  Nominal Account: 
DEBIT-ALL EXPENSES AND LOSSES & CREDIT-ALL INCOMES AND GAINS