Types of accounts in accountancy

The basic and important thing to learn in accounts is type of things. Even these will be help us in the preparation of Statement of Profit & Loss and Balance Sheet etc.

There are 3 types of accounts
1. Personal Accounts
2. Real Accounts
3. Nominal Accounts

1. Personal Accounts:

Rule: Debit the receiver
          Credit the giver

2. Real Accounts:

Rule: Debit what comes in
          Credit what goes out

3.Nominal Accounts

Rule: Debit all expenses and loses
           Credit all incomes and gains