Types of Accounts: Real, Personal and Nominal Accounts with Examples 7

There are credit and debit rules of accounting which is referred as 3 golden rules of accounting. It is also referred as 3 types of accounts in accounting. Here we will also see examples of real account, examples of nominal account as well as examples of personal account. Let us understand further in detail:

Three Types of Accounts into Accounting system are:

1. Real Account.

2. Personal Account.

3. Nominal Account.

1. Real Account Definition:

Any kind of assets which is either tangible (for example: land, stock, building, etc.) or intangible (for example: goodwill, copyrights, patents, etc.) are categorized into Real Account.

Frist Golden Rule – Real Accounts
Debit what’s come in and Credit what goes out.

Example of Real Accounts:

Mr. Joe purchased furniture of Rs.75,000/- for cash.

AccountsDebitCreditApplied Rules
Furniture A/c75,000Debit what’s come in.
To Cash A/c75,000 Credit what goes out.

Wiki Finance pedia - e-learning course on Accounting Wikipedia Chapter - Types of Accounts Real, Personal and Nominal AccountsReal accounts are one of the three types of accounts. As per the first golden rule of Real Accounts – Furniture A/c is debited with Rs.75,000/- and Cash A/c is credited with Rs.75,000/-.

2. Personal Account Definition:

Those accounts which are either directly or indirectly related to individuals, companies, firms or organisations are known as Personal Account. Example of personal accounts includes: Kumar Account, Xyz Pvt. Ltd. account, capital account, prepaid account, bank account, drawings account, creditors account, outstanding account, debtors account, suppliers account, etc.

Second Golden Rule – Personal Accounts
Debit the receiver and Credit the giver

Example of Personal Accounts:

Mr. Jennifer paid Rs.45,000/- to Xyz-pqr Private Limited Company by cheque.

AccountsDebitCreditApplied Rules
Xyz-pqr Pvt. Ltd.45,000Debit the receiver.

To Bank Account

45,000Credit the giver.

Personal accounts are one of the three types of accounts. As per the second golden rule of Personal Accounts – Xyz-pqr Pvt. Ltd. A/c is debited with Rs.45,000/- and Bank A/c is credited with Rs.45,000/-.

3. Nominal Account Definition:

Those accounts which are associated with income, gains, losses or expenses are known as Nominal Account. At the end remaining balances of nominal accounts are then posted to capital account.

Third Golden Rule – Nominal Accounts
Debit all expenses & losses and Credit all income’s & gain’s

Example of Nominal Accounts:

Ms. Jenny purchased goods of Rs.22,000/- for cash.

AccountsDebitCreditApplied Rules
Purchase A/c22,000Debit all expenses & losses.

To Cash A/c

22,000Real A/c: Credit what goes out.

Nominal accounts are one of the three types of accounts. As per the third golden rule of Nominal Accounts – Purchase A/c is debited with Rs.22,000/- and Cash A/c is credited with Rs.22,000/-.


- Tutorial Course - Basics of Accounting for Beginners -

» e-Learning Chapter 1: What is Accounting with Examples

» e-Learning Chapter 2: Objectives of Accounting

» Currently Reading: Types of Accounts

» e-Learning Chapter 4: Branches of Accounting

» e-Learning Chapter 5: Accounting Process

» e-Learning Chapter 6: What is Assets and Current Assets?

» e-Learning Chapter 7: What is Liability and Current Liabilities?

» e-Learning Chapter 8: What is Revenue and Expenses?

» e-Learning Chapter 9: What is a Single Entry System?

» e-Learning Chapter 10: What is Double Entry System?

» e-Learning Chapter 11: What are Journal Entries? Format and Examples.

» e-Learning Chapter 12: What Is a General Ledger? Format with Example.

» e-Learning Chapter 13: What is a Trial Balance? Examples and Limitations.

» e-Learning Chapter 14: What is a Profit and Loss Statement or Income Statement?

» e-Learning Chapter 15: What is a Balance Sheet? Definition, Format and Examples.

» e-Learning Chapter 16: What is Managerial Accounting? Role, Job and Objectives.

» e-Learning Chapter 17: Accounting Quiz – Basics of Accounting for Beginners Module.


Types of Accounts: Real, Personal and Nominal Accounts with Examples
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