Classification of Accounts

All accounts may be grouped in two broad categories or classifications. These are personal and impersonal.

Personal Accounts: These are the accounts that have the names of debtors (customers) or creditors (suppliers). They are therefore personal to this extent.

Impersonal Accounts: These non-personal accounts may be divided into Real Accounts and Nominal Accounts.

-Real Accounts - These accounts are tangible in nature and represent accounts that records possession such as machinery, furniture, premises and stock.

-Nominal Accounts – These accounts are intangible in nature and represent accounts that in which expenses, revenues and capital are recorded.

CLASSIFICATION OF ACCOUNTS

Rules of Entry for general Accounts

An account is divided into two sides, a left side called the debit side and a right side called the credit side. The title of the account is written in the center at the top of each account.

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