Accounts, nominal, real and personal

Updated: Aug 20, 2021

Terms used in bookkeeping, ledger accounts are divided into these three broad categories, though the distinction is of no particular value. Personal accounts are those of debtors and creditors, real accounts are those giving details of assets and capital of the business, nominal accounts deal with expenditure and revenue.

Reference: The Penguin Business Dictionary, 3rd edt.

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