Personal Account, Impersonal Account, And Real And Nominal Account - SS1 Accounting Lesson Note
Personal account, impersonal account, and real and nominal account are all terms used in accounting to categorize different types of financial transactions. Personal and impersonal accounts are used to categorize transactions involving individuals or items, while real and nominal accounts are used to categorize transactions involving physical items or income and expenses.
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Personal Account: A personal account is an account that relates to a person or entity. For example, a bank account, customer account, or supplier account are all examples of personal accounts. Personal accounts are used to keep track of transactions involving individuals or organizations.
Impersonal Account: An impersonal account is an account that does not relate to a person or entity. Instead, it relates to an item or a group of items. For example, a fixed asset account, depreciation account, or expense account are all examples of impersonal accounts. Impersonal accounts are used to keep track of transactions involving items rather than individuals.
Real Account: A real account is an account that relates to tangible items such as assets, liabilities, and equity. For example, a cash account, accounts receivable account, or inventory account are all examples of real accounts. Real accounts are used to keep track of transactions that involve physical items.
Nominal Account: A nominal account is an account that relates to expenses, revenues, gains, and losses. For example, a sales account, interest income account, or rent expense account are all examples of nominal accounts. Nominal accounts are used to keep track of transactions that do not involve physical items, but instead relate to the income and expenses of a business.