Account is T – form table in which accountant records different transaction systematic and classified way after posting from journal.
For passing journal entries, you should know the rules of double entry system. Rules of double entry system apply on different accounts which we classified into two category.
1. Personal accounts
2. Impersonal accounts
1. Personal accounts
PERSONAL accounts are of persons. From watching these accounts we can find what amount, we have to give or what amount, we have to get. Personal account can also divide into following sub parts.
( A ) Natural person’s personal account
These accounts are of natural persons. These persons are made of blood, bones , skin and other living organs. We can touch them physically and they can feel us . They can sells the goods to us or we sell them goods. So, we need to make these account for tracking the amount receivable and payable.
For example Visual’s account, Mohan’s Account etc.
( B ) Artificial person’s personal accounts
Artificial persons are those which are not living human being but have existence in the eye of Law. They can operate their business by board of directors, managers and other authorities of organization.
For example : - Chatanya Gorya Charitable trust account , Tally solution Company account , ICICI bank accounts , School account etc.
( C ) Representative person’s personal accounts
These accounts are of Representative persons who represent following:-
( i ) Outstanding Expenses account
Outstanding expenses account are those personal account to whom, we have to pay expenses, we have already taken services from them. But still we have not paid them. This is also called liability account because its balance will be shown in liability side of organization’s balance sheet.
For example outstanding salary account , outstanding lighting bill , outstanding Internet charges account etc.
( ii ) Advance expenses account
If we have paid the expenses in advance but still we have to obtain services .So, we make advance expenses account which represents the person to whom we have paid expenses in advance.
For example Advance salary account , Advance lighting bill , Advance Internet charges account etc.
( iii ) Outstanding Income account
This account shows the amount of income which is receivable from other party.
We can explain this account with simple example
Suppose if Ram have given services to Sham but after providing services, if Ram does not get his income, then Ram will open outstanding income account in his books. It is Representative account of Sham. This account will tell amount which is receivable from sham.
( iv ) Advance income account
Advance income account is also personal account. This account is made when earning is received but services are not given. So, this account is very helpful to track the amount which is taken advance before giving services.
2. Impersonal accounts
All accounts which are not personal are impersonal accounts. It can be divided into sub part.
( a ) Real Account
Real account shows the assets.
For Example : In these account we can include stock account, cash account, tangible asset account, intangible assets accounts etc.
( b ) Nominal Account
Nominal accounts are of expenses and income. All expenses and income are transferred to nominal account.
For example: - Wages account, salary account, office expenses account,
dividend account
impossible that one organisation will appoint all 
