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    Classification of Accounts

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    john
    This document discusses the classification of accounts into three types: personal accounts, nominal accounts, and real accounts. Personal accounts represent individuals and organizations. Nominal accounts represent expenses, incomes, losses, and gains. Real accounts represent assets of a business. Examples of each type of account are provided. The next lesson will explain the classes of accounts in more detail.

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    Classification of Accounts

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    john
    17 views12 pages
    This document discusses the classification of accounts into three types: personal accounts, nominal accounts, and real accounts. Personal accounts represent individuals and organizations. Nominal accounts represent expenses, incomes, losses, and gains. Real accounts represent assets of a business. Examples of each type of account are provided. The next lesson will explain the classes of accounts in more detail.

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    This document discusses the classification of accounts into three types: personal accounts, nominal accounts, and real accounts. Personal accounts represent individuals and organizations. Nominal accounts represent expenses, incomes, losses, and gains. Real accounts represent assets of a business. Examples of each type of account are provided. The next lesson will explain the classes of accounts in more detail.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    17 views12 pages

    Classification of Accounts

    Uploaded by

    john
    This document discusses the classification of accounts into three types: personal accounts, nominal accounts, and real accounts. Personal accounts represent individuals and organizations. Nominal accounts represent expenses, incomes, losses, and gains. Real accounts represent assets of a business. Examples of each type of account are provided. The next lesson will explain the classes of accounts in more detail.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 12

    BUSINESS STUDIES 8- 9

    TOPIC : CLASSIFICATION OF ACCOUNTS


    SUB-TOPIC : TYPES OF CLASSES OF ACCOUNTS

    PRESENTER: NAME : SIMUNTALA JOHN


    SCHOOL : MISHISHI DAY SECONDARY
    DISTRICT/PROVINCE : CHINSALI / MUCHINGA PROVINCE
    TYPES OF CLASSES OF ACCOUNTS
    Define an account
    Identify types of classes of accounts
    AN ACCOUNT
    What is an account
    An account refers to an individual record of increase and decrease in
    a particular asset, liability or stockholders equity
    An account is simply a summary record of information relating to a
    particular item
    TYPES OF CLASSES OF ACCOUNTS
    Normally, ledger accounts are classified into three classes.
    (as illustrated in the diagram below)

    Classes of Accounts

    Personal Accounts Nominal Accounts Real Accounts

    • Debtors (Dr) • Income (Cr) • Assets (Dr)


    • Creditors (Cr) • Expenses (Dr)
    i. Personal Accounts
    • Personal accounts are accounts representing individuals,
    companies and organizations. 
    • Examples of personal accounts are:
    Mumba Jane, 
     Chris Company Ltd,
    Finance Bank,
    FAWEZA account,
    capital and
    drawings account. 
    ii. Nominal Accounts
    • Nominal accounts are accounts that represent expenses, losses,
    incomes or gains.
    • Examples of nominal accounts are:
    Salaries and Wages, Insurance, Repairs, Stationery,
    Electricity, Discount Allowed,
    Purchases,
    Sales,
    Discount Received, Commission Received, Rent Received and
    many more.
    iii. Real Accounts

    • Real accounts are accounts that represent the property


    or assets of the business . 
    • Examples of real accounts include
    Cash in hand ,
    cash at bank,
    machinery and equipment,
    furniture,
    premises and many more.
    Example
    For clarity, let us classify the following accounts into personal, nominal and real account
    • Capital
    • Fixtures and fittings
    • Premises
    • Banda and Sons Ltd
    • Rent
    • Salaries
    • Kabwe Associates
    • Water bills
    • Cash
    Answers
    Lesson Activity

    Classify the following into personal nominal and real accounts

    a. Premises
    b. ZAMEFA Plc account
    c. Insurance account
    d. A. Muyunda’s account
    e. Bank account
    f. Rent received account
    Summary

    Business normally classify ledger accounts into personal, nominal and


    real accounts.
    • Personal accounts are accounts representing individuals, companies
    and organizations.
    • Nominal accounts are accounts represent expenses, losses, incomes
    or gains.
    • Real accounts are accounts that represent the assets.
    In the next lesson, we will explain in detail the
    classes of accounts

    THANKS YOU

    Stay Home. Stay Safe

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