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It personal account, who are dealing with established customers and suppliers.ItTabieinpeople likeMohammed Ahmed...Or legal, such as ministries andbanks.... Thepurpose ofknowledgeas a result offacilityoperationswith others. And opens an account for each person individually.Fictitiousor notional accountIt
nominal account
with expenses and revenues or profits, losses and expenses and losses are considered inherently City Revenue and profit accounts payable are inherently
Transactions are of3 type divided broadly.
1.Transactions related to Natural persons (persons by name), Artificial persons(in the name of different entities) , Representative persons (outstanding payments like salaries, rent etc).
2.Transactions related to various kinds of products/things which is used in the business (various kinds of assets)
3.Transactions related to various kinds of paid expenses, income, profits, or losses: like, rent paid, salaries paid, bad debts written off, income derived by way of sale of some assets above their real price as per books.
First category of accounts belongs to Personal accounts, Second category of accounts belongs to Real accounts and the last category of accounts belongs to Nominal accounts.
And the accounting rules are framed on the basis of these3 categories as cross combinations for debit and credit.
The rules are:
Personal accounts: Debit the Receiver and credit the giver
Real accounts: Debit what comes into the business and Credit what goes out of the business.
Nominal accounts: Debit all expenses and Losses and credit all incomes and gains.
agreed with mr. venti
