CLASSIFICATION OF LEDGER ACCOUNTS

The accounts which may appear in the ledger are commonly classified into the following groupings.

Personal accounts

These are the accounts for each person to whom we sell on credit (i.e. our debtors) and from whom we purchase on credit (i.e. our creditors). The capital account is also a personal account

Real accounts

 These are our "property" accounts, for instance, vehicles,     equipment. Our fixed asset can be grouped in to this account.

Nominal accounts 

 These are the accounts for income, purchases and     expenses of the business. Nominal accounts contains, all expenses of the business organizations.