Types of account - class-IX

Outstanding expenses are recorded in books of finance at the end of an accounting period to show the true numbers of a business. 

Kamal, Mala, and Sharma are individual human beings. Accounts representing individuals are classified as natural personal accounts.

Accounts of things are called real accounts. For each of the thing, a separate account is opened in the ledger. The balances of real account are carries over to the next period. Goodwill is a intangible fixed assets and accounts receivable are current assets. Both are real accounts.

Real accounts are the accounts that refer to the possession of a business. The possessions may be tangible or intangible. The possession are the assets of a business.

Personal accounts are related to individuals, firms, companies, etc. A few examples of personal accounts are debtors, creditors, banks, outstanding.//prepaid expenses, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc. Personal accounts are classified into three subcategories: Artificial, Natural, and Representative.

Import duty is a tax collected on imports and some exports by a country's customs authorities. It is usually based on the imported goods value. Depending on the context, import duty may also be referred to as customs duty, tariff, import tax or import tariff.

Real accounts are the accounts that refer to the possessions of a business. The possessions may be tangible and intangible. The possessions are assets of the business.

Accounts relating to income, revenue, gain, expenses  and losses are termed as nominal accounts. These accounts are also known as fictitious assets as they do represent any intangible asset. A separate account is maintained for each head or expense or loss and gain or income. Wages account, Rent account, Commission account, Interest received account are some examples of nominal account. The rule for nominal accounts is: Debit all expenses and losses; Credit all incomes and gains.

Accounts relating to properties or assets are known as "Real Accounts". A separate account is maintained for each asset e.g. Cash, Machinery, Building, etc. Real accounts can be further classified into tangible and intangible.

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are  necessary, in  particular, to record credit transactions. Personal accounts are of the following types:

All assets of a firm, which are tangible or intangible, fall under the category "Real Accounts".

 An overdraft facility is a credit agreement made with a bank that allows an account holder to use or withdraw more money than what they have in their account up to the approved limit. The sanctioned overdraft limit and the interest charged will vary based on the nature of the asset offered as collateral.

There are mainly three types of accounts: Real, Personal and Nominal accounts. 

There are mainly three types of accounts in accounting: Real, Personal and Nominal accounts. Personal accounts  are classified into three subcategories: Artificial, Natural, and Representative. Personal accounts are related to individuals, firms, companies, etc. A few examples of personal  accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers. accounts of goods suppliers, capital, drawings, etc. Representative Personal accounts are those which represent a certain person or a group directly or indirectly. E.g. Let's say that wages are paid in advance to an employee-a wage prepaid account will be opened in the books of accounts. This wages prepaid account is a representative personal account directly linked to the person. Prepaid.Advance Salary A/c are classified as representative personal A/c.

There are mainly three types of accounts in accounting: Real, Personal and Nominal accounts. 

There are mainly three types of accounts in accounting: Real, Personal and Nominal account. 

The debit balance of a personal account indicated debt owing by the person and credit balance indicates debts owing to the person concerned. For the business, the first one is account receivable or asset, while the second is accounts payable or liability. Every personal account showing debit balance (i.e. excess of debit side over credit side) will reveal the amount by which the debit side is more than the credit side. Debit balance is recoverable from the person whose account shows a debit balance. A debit balance to a personal account is an asset and therefore the more debit balance to a personal account is an asset and therefore the more debit balances to personal accounts, more the assets are in the form of outstanding recoverables. The debit balance of a personal account shows the amount receivable.

Outstanding Salary A/c is a Representative Personal Account as it represents a group of people to whom some amount of salary is payable. Similarly other outstanding and prepaid expenses also fall under the category of representative personal accounts.

Normally the Personal account and Real account are balanced. Only accounts relating to assets and liabilities ,that is real account and personal accounts are balanced periodically.

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.

Ram's A/c is a personal A/c.

From the fundamentals of accountancy: 

• Bank loan accounts for customer is personal account.
• B/R and B/P are not assets because they are not yet acquired as like Plant, building etc. They are yet to be en cashed. Asset means which has been acquired and has some value. Hence, Bills Receivable and Bills Payable are Representative Personal A/cs.
• Capital account is a personal account. because capital account is related to owner personal capital and that why this is treated in the liabilities side of balance sheet.
• Purchase - a real or nominal account. Purchased goods are initially treated as cost of goods which will be sold during the year. It is only at the end of the year we make an adjustment for the goods which remain unsold, i.e. closing stock.

Accounts relating to income, revenue, gain, expenses and losses are termed as nominal accounts. These accounts are also known as fictitious accounts as they do not represent any tangible asset. A separate account is maintained for each head or expense or loss and gain or income. Wages account, Rent account, Commission account, Interest received accounts are some examples of nominal account. 

Nominal accounts represent expenses, losses, incomes, and gains. At the end of the accounting year, these are closed by transferring their balances to the Profit and Loss Account.

Examples of nominal accounts are Purchase A/c, Sales A/c, Salary A/c etc. 

Outstanding wages is classified as a personal account and not a nominal account. This account represents the accounts of all those persons to whom wages have not been paid and hence, are outstanding.

Prepaid Rent is an asset representing a claim on a service. It is a representative personal account because it represents the landlord to whom the payment was made in advance.

• Prepaid expenses are recorded in the books at the end of an accounting period to show true numbers of a business. Prepaid (unexpired) expense is a personal account and is shown on the Assets side of a balance sheet.
•  Real account - All assets of a firm, whether tangible or intangible, fall under the category “Real Accounts“. 

• Nominal account - Accounts which are related to expenses, losses, incomes and gains are called Nominal accounts.These accounts types are related to income or gains and expenses or losses. 
• For example: – Rent A/c, commission received A/c, salary A/c, wages A/c, conveyance A/c, etc.

A joint venture is an arrangement in which two or more parties agree to pool their resources for the purpose of a specific task or transaction. 

In a joint venture, each of the members is responsible for profits, losses and costs associated with it.

It is a Nominal Account.

Salary paid to Ram will be debited to salary A/c instead of Ram's Personal A/c. The correct Journal Entry is
Salary A/C                 Dr.
To Cash A/c
(Being salary paid to Ram)

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of three types: Natural, Artificial and Representative personal accounts.

There are mainly three types of accounts: Real, Personal and Nominal accounts. 

Personal accounts are classified into three subcategories: 

Artificial, Natural, and Representative. All assets of a firm, which are tangible or intangible, fall under the category "Real Accounts". 

Tangible real accounts are related to things that can be touched and felt physically.

Intangible real accounts are related to things that can't be touched and felt physically.

The golden rule of real accounts is: Debit what comes in; Credit what goes out.

Artificial or legal persons Account - An account recording financial transactions with an artificial person created by law or otherwise is called as an Artificial personal Account. 

E.g. Co-operative society account.

Both Rent Paid and Rent Received are nominal accounts because they represent expenses and incomes, respectively. Neither is a real account.

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types:

Intangible real accounts represents assets and properties which cannot be seen, touched or felt but can be measured in terms of money. 

For e.g. Goodwill account, Trademark account, Patents account. Patent account is an intangible asset and hence, is classified as a real account.

Outstanding expenditure are those expenses which have been incurred and consumed during an accounting period and are due to be paid but are not paid. 

Modern approach. According to modern approach, the accounts are classified as asset accounts, liability accounts, capital or owner's equity accounts, withdrawal accounts, revenue/income accounts and expense accounts.

 Bad debt recovery is a payment received for a debt that was written off and considered uncollectible. The receivable may come in the form of a loan, credit line, or any other accounts receivable. Because it generally generates a loss when it is written off, bad debt recovery usually produces income.

Accounts relating to properties or assets are known as "Real accounts". A separate account is maintained for each asset e.g. Cash, Machinery, Building, etc. Real accounts can be further classified into tangible and intangible.

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of three types: Natural, Artificial and Representative accounts.

Accounts relating to properties or assets are known as "Real accounts". A separate account is maintained for each asset e.g. Cash, Machinery, Building, etc. Real accounts can be further classified into tangible and intangible.

 Prepaid expenses are recorded in the books at the end of an accounting period to show true numbers of a business. Prepaid (Unexpired) expense is a personal account and is shown on the Assets side of a balance sheet. Expenses are amounts paid for goods or services purchased.

Nominal Accounts are accounts related and associated to losses, expenses, income or gains. Examples include purchase account, sales account, salary A/c, commission A/c etc. 

Hence, purchase is nominal account.

Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable. 

It is classified as an intangible asset on the balance sheet, since it can neither be seen nor touched.

Nominal accounts are temporary accounts that are closed at the end of the accounting period; therefore, they are not balanced in the traditional sense of carrying a balance forward to the next period.

Salary is an expense for the business, and all expense accounts are classified as nominal accounts.

Personal Income Tax is a drawing by the proprietor. Since it relates to the owner, it is a personal account.

Accrued Interest is an asset representing an amount receivable from a specific party, making it a personal account.

A creditor is a person or entity to whom money is owed, thus it is a personal account.

Unaccrued (or unearned) interest represents an obligation to a person or entity, making it a personal account.

Sales Tax Payable is a liability to the government, which is a legal person, making it a personal account.

Interest Receivable represents an amount due from a person or entity, classifying it as a personal account.

A debtor is a person who owes money to the business, making it a personal account.

A bank account represents the business's relationship with the bank, which is an artificial person.

Interest received in advance is a liability to the person who paid the money, making it a personal account.

The capital account represents the owner's investment in the business, thus it is a personal account.

An advance to a supplier is a claim against that specific supplier, making it a personal account.

An advance from a customer represents a liability to a specific entity or person. Therefore, it is classified as a personal account.

An advance to an employee represents a receivable from a specific individual. Accounts representing individuals are personal accounts.

A sales account records revenue generated by the business. Since it represents income, it is classified as a nominal account.

Copyright is an intangible asset owned by the business. Assets are classified as real accounts.

Discount received is a gain for the business. All accounts related to expenses, losses, incomes, and gains are nominal accounts.

Trade marks are intangible assets. Like other assets, they are classified under real accounts.

Technical know-how is an intangible asset. Assets fall under the category of real accounts.

Purchase returns represent a reduction in expenses. As it relates to an expense category, it is a nominal account.

Adjusted purchases relate to the cost of goods sold. Since it is an expense-related account, it is a nominal account.

Bad debts represent a loss to the business. All losses are recorded in nominal accounts.

Personal accounts are related to transactions with the debtors and creditors, hence provision for discount on debtors is a personal A/c.

Goods misappropriated represent a loss to the business. Losses are classified as nominal accounts.

Reserve for discount on debtors is a contra-asset account related to debtors. Because it is tied to debtors (persons), it is classified as a personal account.

Loss of goods by fire is an expense or loss for the business. Therefore, it is a nominal account.

Donation and charity are expenses for the business. Expenses are classified as nominal accounts.

Cash embezzlement represents a loss to the business. Losses are recorded in nominal accounts.

Free samples represent an advertising expense for the business. Expenses are nominal accounts.

Accounts receivable represent amounts owed by customers. Since they represent persons or entities, they are personal accounts.

A loan to Ramesh is a receivable from a specific person. Therefore, it is a personal account.

Provision for depreciation is a valuation account that reduces the value of a tangible asset. Since it is directly linked to a real account (the asset), it is generally treated as a real account.

Accounts payable (AP) is an account within the general ledger that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.

Share allotment account represents the amount due from shareholders. Since it represents a group of persons, it is a personal account.

Bank interest is either an income or an expense for the business. All such items are nominal accounts.

The effect of opening entries is opening of real and personal accounts as these are the types of account which are left with closing balance at the end of the year. 

A loan from Mahesh represents a liability to a specific person. Therefore, it is a personal account.

There are mainly three types of accounts: Real, Personal, and Nominal. Personal accounts are classified into three subcategories: Artificial, Natural, and Representative.

Personal accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc. 

Nominal accounts in accounting are the temporary accounts, such as the income statement accounts. In other words, nominal accounts are the accounts that report revenues, expenses, gains, and losses. They are closed at the end of each accounting year. This means that their account balances are transferred to a permanent account. This closing process allows the nominal accounts to start the next accounting year with zero balances. 

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types:

Accounts recording transactions with a person or group of persons are known as personal account. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types:

Accounts relating to properties or assets are known as "Real Accounts". A separate account is maintained for each asset e.g. Cash, Machinery, Building, etc. Real accounts can be further classified into tangible or intangible.

Accounts recording transactions with a person or group of persons are known as personal account. These accounts are necessary, in particular, to record credit transactions. Natural, Artificial and Representative are various types of personal accounts.

Accounts relating to properties or assets are known as "Real accounts". 

Accounts relating to properties or assets are known as "Real accounts". A separate account is maintained for each asset e.g., Cash, Machinery, Building, etc. Real accounts can be further classified into tangible and intangible.

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types: 

Accounts relating to income, revenue, gain, expenses and losses are termed as nominal accounts. These accounts are also known as fictitious accounts as they do not represent any tangible asset. 

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of three types: Natural, Artificial and Representative accounts.

There are mainly three types of accounts: Real, Personal and Nominal accounts. Personal accounts are classified into three subcategories: Artificial, Natural and Representative. Personal accounts are related to individuals, firms, companies, etc.  

There are mainly three types of accounts: Real, Personal and Nominal accounts.