Cost Accounting - Explain about real account, personal accounts and nominal accounts

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Explain about real account, personal accounts and nominal accounts

Total Answers and Comments: 3

Last Update: August 18, 2008 Asked by: sureshv

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Submitted by: arvind133

Real Account:

The accounts relating to all assets and properties are called real accounts.

Personal Account:
The accounts relating to induviduals, firms, associations or companies are known as personal account.

Nominal Account:
The accounts relating to expenses, losses, incomes and gains are known as nominal accounts.

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maurya_santosh, umairahmedpk

January 16, 2008 06:47:11

arvind133

Member Since: January 2008 Contribution: 1

RE: Explain about real account, personal accounts and nominal accounts

Real Account:

The accounts relating to all assets and properties are called real accounts.

Personal Account:
The accounts relating to induviduals firms associations or companies are known as personal account.

Nominal Account:
The accounts relating to expenses losses incomes and gains are known as nominal accounts.

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June 11, 2008 08:39:11

sreekanthvsk

Member Since: June 2008 Contribution: 2

RE: Explain about real account, personal accounts and nominal accounts

Real Account : All Assets and Liabilities fall under Real account. e.g. Cash Bank Building Loan Creditors etc.......
Here Debit what comes in and Credit what goes out.

Personal Account : All accounts relating to Individuals Firms Companies etc... falls under Personal Account.
Here Debit the Receiver and Credit the Giver.

Nominal Account : All accounts relating to Incomes and Expenses.
Here Debit all Expenses and Credit all Incomes.

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August 17, 2008 22:32:04

vasudeo007

Member Since: July 2008 Contribution: 64

RE: Explain about real account, personal accounts and nominal accounts

The double entry book keeping system that is followed world over has classified the accounts into two categories: Personal Accounts and Non-personal Accounts.

Personal accounts are those accounts which belong to either single person or group of persons. Examples are Capital account all debtors and creditors employees account holders deposit holders etc.

In above cases person does not always mean an individual it can also mean some other company.

The non personal accounts are bifurcated into : Real accounts and Nominal accounts.

Real accounts means those accounts which belong to assets whether real assets or non real assets. Examples are building cash fixed deposits maintained by you with someone else plant and machinery etc

Nominal accounts are most popular category as they are expense and income accounts. Profit and loss a/c Rent a/c all items of revenue expense a/cs all items of revenue earning a/cs etc are nominal accounts.

In a nut shell a/cs are bifurcated into 3 Personal real and nominal a/cs.
Personal belong to any individual group of people or other company or government etc.
Real means the real assets or non real assets real means tangible in this context. So the asset may be tangible or not but it can still be maintained as real a/c
Nominal means that all expense and income items.

Vasudeo

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