Nature of Accounts:-

1) Asset
2) Liability
3) Ownership
4) Income
5) Expense

Types of Accounts:-
1) Personal Accounts
2) Nominal Accounts
3) Real Accounts

1) Personal Account:- Transactions related to individuals or Organizations

with whom they do business directly.
Ex:- Suppliers, Customers, Employee Salaries.

Golden Rule:- Debit the Receiver and Credit the Giver

2) Real Account:- Trasactions releted to the assets and liabilities of the

business.
These account balances never come to zero at the end of the
financial year unless there is a clousure of of business, sale of asset etc.
These accounts appear in the balance sheet.

Ex:- Machinery, Goodwill, Buildings, Patent rights,Loans.

Golden Rule:- Debit what comes IN and Credt what goes OUT.

3) Nominal Account:- Transactions related to income, expense, profit and loss

of the business.
These accoutns apper in the Profit and Loss statements.

Golden Rule:- Debit all expenses and losses and Credt the income and gain