Types of account in tally

Types of accounts

Personal account: Personal accounts are the accounts of persons, firms, concerns and institutions which the businessmen deal.

Principles: 

 Debit the receiver

                                                  Credit the giver

Real Account:             These are the accounts of things, materials, assets & properties. It has physical existence which can be seen & touch.

 Ex. Cash, Sale, Purchase, Furniture, Investment etc.

Principles:            

         

  Debit what comes in

                                                           

                                    Credit what goes out

Nominal account:       Nominal account is the account of services received (expenses and Losses) and services given (income and gain)

Ex. Salary, Rent, Wages, Stationery etc.

Principles:                              

Debit all expenses/losses

                                        Credit all income/ gains