Accounts are classified into two categories:
-Real Accounts
-Nominal Accounts
REAL ACCOUNTS
These are the accounts classified as Assets, Liabilities, and Drawings/Withdrawals and should be placed as items in the statement of financial position/Balance sheet
NOMINAL ACCOUNTS
Are the statement showing the result of operation of a given period of time.
These are the expenses, cost and losses.
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ALWAYS REMEMBER THAT ALL THE ACCOUNTS UNDER ASSET, LIABILITY AND OWNERS EQUITY ARE PART OF THE BALANCE SHEET ACCOUNT/STATEMENT OF FINANCIAL POSITION.
AND ALSO ALL THE ACCOUNTS UNDER INCOME/REVENUE AND EXPENSES ARE PART OF THE INCOME STATEMENT ACCOUNT.
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ACCOUNTING
RandomMaybe you are here because you're an ABM Student. Grade 11 or 12? This may contained a detailed notes in FUNDAMENTALS OF ACCOUNTANCY BUSINESS MANAGEMENT 1 (FABM1).
