Accounts can be classified as Nominal, Personal & Real account.

1. Classification
of Accounts
Alice Williams
Maud Williams High School

2. CLASSIFICATION OF
ACCOUNTS
Accounts
Impersonal
Nominal Real
Personal
Natural
Artificial
Person Account
Representative
Person Account

3. Classification of accounts
• There is a classification for
every thing in accounting.
From classifying
transactions right down to
ledgers and financial
statements.

4. Accounts can be classified into
three categories
• Nominal
• Personal
• Real

5. Nominal Accounts
• Are considered as temporary accounts.
• They only last for one accounting period.
• They are balanced off at the end of the
period.
• In the next accounting period they start at a
zero balance.

6. Examples of Nominal Accounts
• Sales Revenue
• Service Revenue
• Interest Expense
• Supplies Expense
• Utilities Expense
• Wages Expense

7. Personal Accounts
• are related to persons ,
• institutions
• companies.

8. Examples of Personal Accounts
• Bank account,
• Creditors account
• Debtors Account

9. Real Account
• This type of accounts will
always be apart of a business
books.
• They showed up on the
business balance sheet.
• They show assets, liabilities
and owners equity.

10. Reference:
• Wood, F., & Robinson, S. I.
(2007). Principles of accounts for the
Caribbean (5th ed.). Harlow, Essex: Pearson
Longman.