Advertisement

List and explain basic types of accounts.

Account is divided in following three types:
1.       Personal account
2.       Real account
3.       Nominal account

1.       Personal account: Any individual person or any firms or any company or a bank is considered in a personal account.
2.       Real account: Account of any physical things. The cash account or goods account are examples of real account.

3.       Nominal account:  Account of any invisible things that means that things are in terms of cash. For example: insurance account, rent account etc.