Difference Among / Between Real Personal And Nominal Accounts

 

Real Accounts include Assets and Liabilities which are not closed at the end of the accounting period. Real accounts are also called Permanent Accounts. These are also considered as balance Sheet Accounts as these are transferred to balance sheet.

Personal Accounts are related with living persons or natural persons, artificial persons and representative persons. Examples include Mr. A, Owner’s Equity Account, Shareholder Equity Account, ABC Company Account, A&S Company Account, Outstanding Rent Account, Outstanding Salary Account, Prepaid Rent, etc. Personal accounts are also called Balance Sheet Accounts as these are transferred to balance sheet on the specified date.

Nominal Accounts are Temporary Accounts which are closed at the end of the accounting period as these types of accounts does not have any ledger’s balances. These accounts include Revenues, Expenses, Gains, Losses. Nominal accounts are also called Income Statement Accounts.