Answer the following questions:

What are the types of Accounts? Give examples.

The various types of accounts are as follows:-

• Personal Account- These are accounts which are owned and maintained by any individual person. The transactions are done by that person from his/her account. Example- Mr. X’s a/c in Y bank.

• Real Account- The ledger accounts that are maintained by the business concerns to records the assets that the firm possess. Example building a/c., car a/c., Furniture a/c.

• Nominal Accounts- Two separate accounts are meant for keeping the profits or losses of a business and are maintained by the business owners. This is called Nominal account. Example- salaries a/c, commission a/c.