Type of Accounts

1. Personal Account -it represents people, businesses, or other organizations.
   • State Bank of India A/c (Bank Name)
   • Sri Ram Capital A/c (Investor)
   • Raja A/c (Supplier Name)
   • Kumar A/c (Customer Name)
2. Real A/c – it Represents Goods (Items) and Assets
   • Cash A/c ,
   • Furniture A/c,
   • Goods A/c
   • Purchase of Goods A/c ( Purchase A/c)
   • Sales of Goods A/c, (Sales A/c)
   • Credit Sales A/c,
   • Computer A/c,
   • Machinery Purchase A/c ,
3. Nominal A/c – It represents Income ,Gains,Expenses, Losses
   • Rent Paid ,
   • Salary Paid ,
   • Telephone Charges
   • Wages A/c ,
   • Fees Received ,
   • Interest Received
   • Depreciation A/c , Etc.

1. Sri Ram Started Business with a Capital of 50,000
   • Sri Ram Capital A/c (Personal Account)
   • Cash A/c (Real Account)
2. Bought Computer for cash 10,000
   • Computer A/c ( Real A/c)
   • Cash A/c (Real A/c)
3. Purchase Goods from Ramesh Rs.5000
   • Purchase Goods A/c ( Real Accounts) – it represents Goods / Products/ Items
   • Cash A/c (Real Account)
4. Bought Goods from Ramesh A/c on credit for 10,000.
   • Ramesh A/c (Person A/c)
   • Credit Purchase A/c ( Real Account)
5. Rs.2000 Deposited into SBI A/c
   • SBI A/c ( Persona Accounts)
   • Cash A/c (Real Accounts
6. Telephone Charges Paid by Cash Rs.1500
   • Telephone Charges (Nominal Account)
   • Cash A/c ( Real Account

Golden Rules Accounts

1. Personal Account – Debit the Receiver , Credit the Giver
2. Real Accounts- Debit What Comes is – Credit what Goes Out
3. Nominal Account- Debit All Expenses and Losses , Credit All incomes and Gains

Examples :

Sri Ram Commenced Business with a Capital of 50,000.

Sri Ram Capital A/c	Cash A/c
Personal A/c	Real Account
Credit the Giver	Debit What Comes In
Cr. Sri Ram Capital A/c ……………. 50,000	Dr. Cash A/c ……….. 50.000

He Deposited into SBI A/c from Cash Rs.5000

SBI A/c	Cash A/c
Personal A/c	Real Account
Debit the Receiver	Credit What Goes Out
Dr. SBI A/c ……………. 5,000	Dr. Cash A/c ……….. 5,000

Purchase Goods from Cash A/c Rs.1000

Purchase Goods A/c	Cash A/c
Real A/c	Real Account
Debit What Comes into Business	Credit What Goes Out from Business
Dr. Purchase Goods A/c……………. 1,000	Dr. Cash A/c ……….. 1,000

Purchase Goods from Ganesh Supplier Rs.1000

Purchase Goods A/c	Ganesh A/c
Real A/c	Personal Account
Debit What Comes into Business	Credit the Giver
Dr. Purchase Goods A/c……………. 1,000	Dr. Ganesh A/c……….. 1,000

Telephone Charges Paid from cash 1200

Telephone Charges	Cash A/c
Nominal A/c	Real Account
Debit All Expenses and Losses	Credit What Goes Out from Business
Dr. Telephone Charges A/c……………. 1,200	Cr. Cash A/c……….. 1,200

Interest Received from SBI A/c 2500

SBI A/c	Interest Received A/c
Personal A/c	Nominal Account
Debit the Receiver	Credit all Incomes and Gains
Dr. SBI A/c……………. 1,200	Cr.Interest Received A/c……….. 2,500

Paid to Ganesh (Supplier) – Rs. 1000

Ganesh Supplier A/c	Cash A/c
Personal A/c	Real Account
Debit the Receiver	Credit What Goes Out
Dr. Ganesh Supplier A/c……………. 1,000	Cr. Cash A/c……….. 1,000