00:01
Okay, so we are going to understand the different types of account, okay, that will be applicable to accounting.
00:12
We can say to whole of accounting as a subject.
00:19
So there is a real account, okay, there is a personal account and there is a nominal account.
00:43
Now what happens? so instead of writing the technical definition for each of these, i am going to write the example because accounting is a practical subject.
00:57
So real account is we can say example real account.
01:05
We use mostly for tangible assets, specifically assets.
01:16
So for machinery when we will purchase the machinery or the business.
01:22
Purchases the machinery it will open the machinery account okay then it will open debtors account debtors is used for accounts receivable okay and there are many assets which we create by paying the expense in advance okay like whenever we pay prepaid let's suppose we pay rent on prepaid basis like we have paid rent of next financial year in the current financial year.
02:15
So this will be considered as real account.
02:21
So to account for the transaction in respect of prepaid rent, we will open a rent account account.
02:28
Okay.
02:29
And in case of persons, we will.
02:32
So for personal account, we generally open these type accounts in name of person.
02:39
Like let's say suppose there is a business owner mr.
02:41
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