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 B ala nce S heet Accou nts as t hese are tra nsferred to b ala nce s heet o n t he specified date. N ominal Accounts are Temporary Accounts w hich are closed at the e nd of t he accou nting period as t hese types of accou nts does not have a ny ledger’s b ala nces. T hese accou nts include Revenues, Expenses, Gains, Losses. Nominal accounts are also called Income State...