Classification of accounts

This presentation explains the different classes of accounts in detail and provides examples of each account. 

1. Classification of Accounts Ms. Nayelie Aragon Anglican Cathedral College

2. Classification of Accounts There is a classification for everything in accounting. From classifying transactions right down to ledgers and financial statements Today we will be learning about classifying the most basic and essential, accounts .

3. Accounts can be classified into these categories: Accounts: Personal Accounts (permanent) -Accounts payable -Accounts receivable Impersonal Accounts -Real Accounts (permanent) -Nominal Accounts (temporary)

4. Personal Accounts Represent individuals or an organization. Permanent Accounts which are not closed at the end of the accounting period. Balances are brough forward (b/f) then they become new opening balances.

5. Impersonal Accounts Divided into two categories Real & Nominal Accounts Real Accounts (Permanent) Represent assets, liabilities, and equity These accounts are not closed at the end of the month, similar to personal accounts, their balances are brought forward(b/f) and used as new opening balances. Nominal Accounts (Temporary) Include all income and expenditure accounts, also called temp accounts. these accounts balances are closed or zeroed out at the end of each accounting period.

6. Impersonal Accounts Real Accounts Nominal Accounts Building Capital Motor Car Sales revenue Services revenue Long term loans Short term loans Interest expense Supplies expense Utilities expense Wages expense