1. Personal accounts

  • represent a person or a group of persons with whom the business is
  • further classified into natural , artificial and representative personal accounts
  • NATURAL - belong to individual persons - e. g Suyash’s account
  • ARTIFICIAL - belong to artificial entities like organization, association, company etc. - TATA Motors ’ account
  • Representative - represent certain people in business dealings - outstanding rent account, income received in advance account

2. Impersonal / Real accounts

  1. Represents assets and properties owned by businesses
  2. tangible asset account - building , machinary
  3. intangible asset account - patents, copyright, IP

3. Nominal accounts

  1. accounts of expenses, losses, income, gains, profit etc
  2. e. g - salary account, depreciation accounts