Following are the details examples and categories of Golden Rules of Accounting:-
(1) Personal account:
This account represents a person and group of persons with whom business deals. These accounts are classified into the following three categories:-
a. Natural Person’s Account: Account relating to individual human beings. for e.g. Kalpesh’s A/c, Jay’s A/c, Bhavesh’s A/c, etc.
b. Artificial Person’s Account: Artificial persons mean includes accounts of organizations and associations which are created by law, for E.g. Bank of India A/c, XYZ & Co A/c, and Rajpath Club a/c
c. Representative Personal Account: These accounts represent a certain person or group of persons in business dealing. Accounts relating to outstanding and prepaid items are called representative personal accounts E.g. Outstanding Rent A/c, Income received in advance A/c, Prepaid Wages A/c, etc.
(2) Impersonal account:
Impersonal Accounts are classified into the following two categories:-
a. Real Account: This account represents assets and properties owned by the business. The following are the types of Real accounts.
-Tangible real account (E.g Plant & Machinery a/c, Motor car a/c, Stock of goods a/c etc.)
-Intangible real account (E.g Goodwill a/c, Patents a/c, Trademark a/c, Copyright a/c etc.)
b. Nominal Account: The account of expenses, losses, income, and gains is called a nominal account e.g. Wages a/c, Stationery a/c, Salary a/c, Depreciation a/c, Discount received a/c, etc.
