top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration
Print Preview

What is the difference between personal account real account and nominal account?

+1 vote
3 views
posted Jul 7 by Shantanu Arora

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

0 votes

The 3 golden rules of accounting are also referred to as the debit and credit rules of accounting. They refer to how debits and credits should be handled in the General Ledger for different types of transactions.

The first type of account is a "personal account." This doesn't just include your own personal accounts, but also companies and other organizations. Rule number one, which applies to how you'd handle debits and credits when accounting for this group, is: You Debit the receiver and Credit the giver

The second type of account is real accounts. This group refers to assets, both tangible (equipment, furniture) and intangible (copyrights, patents). Rule number two, which applies to how you'd handle debits and credits when accounting for this group, is: You Debit what comes in and Credit what goes out

The third type of account is nominal accounts. Nominal accounts are temporary income and expenses, like sales and purchases. The rule you'd use when recording debits and credits for this group is Rule number three, which is: You Debit all expenses and losses and Credit all incomes and gains

answer Jul 8 by Sunita
Contact Us
+91 9880187415
sales@queryhome.net
support@queryhome.net
#470/147, 3rd Floor, 5th Main,
HSR Layout Sector 7,
Bangalore - 560102,
Karnataka INDIA.
QUERY HOME
...