accounting heads

All the account heads used in Accounting systems are classified under two types of Accounts i.e. Real Account and Nominal Account. Real Account: Debit what comes in, Credit what goes out. All assets purchase and sold come under it. Nominal Account: Debit all expenses/losses, Credit all incomes/gains [3] All expenses like salary, wages, rent paid etc. debited and all income like rent received, interest received etc. credited. An account for a building you own (an asset) could be thought of as representing how much the building owes you (or the entity, if you prefer) for future building services (shelter, etc.). In that sense, all accounts, even those pertaining to inanimate objects, could be thought of in the same way as "persons". Personal Account: Debit the Receiver/Sundry Debtor, Credit the Giver/Sundry Creditor. All Debtors, creditors etc. come under it