What are personal, nominal, and real accounts?

Question

Accepted Answer

Personal, nominal, and real accounts are types of accounts used in accounting to categorize different types of transactions.

Personal accounts represent individuals, firms, or organizations with whom a business has financial transactions.
Nominal accounts are used to record expenses, incomes, gains, and losses. They are temporary accounts that are closed at the end of an accounting period.
Real accounts are used to record assets, liabilities, and owner's equity. They are permanent accounts that carry forward their balances to the next accounting period.
Examples of personal accounts include accounts receivable, accounts payable, and capital accounts.
Examples of nominal accounts include rent expense, sales revenue, and interest income.
Examples of real accounts include cash, inventory, and accounts payable.

Accepted Answer

A person's previous account means that only one person is the heir of the account and different persons have personal accounts per person.

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