What is meant by personal and impersonal account

 Types of accounts personal , Impersonal & further distribution With examples

Types of accounts 

Types of accounts 

There are basically  two types of accounts 

 1. Personal account

2. Impersonal account 

1. Personal account

Personal account is a account of a person with whom business deals with. And this person are classified  into three 

1. Real person 

2. Artificial/legal 

3.Representative

So the account relating all this type of person are called personal accounts.

Where legal person have a separate identity in law and also known as separate person not a human being. For ,e.g. company A is separate from company B.And in the case of representative it refers to group/individuals where identity is not disclosed.

Debentures A/c

Xyz mills A/c

Mr.xyz A/c

Furniture & fixtures A/c etc.

Impersonal account 

All those account other then personal are said to be impersonal account.Mainly classified into two : 

1. Real A/c

2. Nominal A/c

Real A/c

Accounts of any asset , property or any thing that is owned by a business unit by which the business  is carried out. 

There are 2 types of real account

Tangible assets

The one that carry tangible assets such as machinery a/c, land&building  a/c, cash a/c etc.

Intangible assets

The one that carrying intangible assets such as patent rights a/c, goodwill a/c etc. 

More examples of real account are

Accounts receivable/ payable

Fixed assets

Shares in xyz ltd a/c

Salaries a/c

Premises a/c etc.

Nominal A/c

Account that holds expenses & losses incurred by a business, and all the income or gains ac business holds during business period. As the exist only in name they are said to be nominal a/c .

There are mainly two types of nominal account revenue a/c and expenses a/c.

A revenue account holds all the incomes and gains in business. While expenses account holds all expenses and losses of the business.

More e.g. of nominal account are :

Import duty a/c

Loss by fire a/c

Printing and stationery a/c

Trade expenses a/c

Audit fees a/c

Travelling expenses a/c

Clearing charges a/c

Interest a/c

Insurance premium a/c

Interest receivable a/c, etc.

Hope the article was helpful do leave your comments below let us know if you have any questions. All your feed backs are welcomed as they will let us grow.You can like, share and subscribe to stay updated with this blog through email. also you can follow us on our social media accounts.

R P Vani

The Villain : Smokes and the mirrors ( A Dark billionaire friends -to -enmies -to -loves highschool romance Novel 2021) The Elite Book 1. 

English Version Amazon E-book

French Version Amazon E-book   

 

German Version Amazon E-book

 

Post a Comment