An Account is a summarized record of the transaction relating to a particular person or thing. Such as Karim’s Account, Building Account, Cash Account, Furniture Account, Wages Account, etc.
In Accounting, Accounts are divided into following types: Such as:
Classification of accounts
- Personal Account: When traction takes place with the person, Account is opened in the name of the related person. Such an Accounts is known as personal Account. For example, Rahim’s Account, slam’s Account, etc.
- Property Account: Property Accounts show the assets and possessions, as for example, Building Account, Furniture Account, etc.
- Nominal Account: Nominal Account deals with expense, income or loss; such as Rent Account, Stationery Account, etc.
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