3 Major Classification of Accounts

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 the following types: Such as:

Classification of accounts

Personal Account: When traction takes place with the person, the Account is opened in the name of the related person. Such Accounts are known as personal Accounts. For example, Rahim’s Account, slam’s Account, etc.

Property Account: Property Accounts show the assets and possessions, for example, Building Account, Furniture Account, etc.

Nominal Account: Nominal Account deals with the expense, income, or loss; such as Rent Account, Stationery Account, etc.

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