Accounting Rules:

Personal account can be classified into 3 types as :

(1) Natural personal accounts :

These are the accounts which denotes natural human beings like Ajay , Bali , Chandan , Diya etc.

(2) Artificial personal accounts :

These are the accounts which are used to indicate that transactions occur with entities which have a separate legal identity which they possess in the eyes of law.
For example ABC Ltd., Government , State bank of India etc.,

(3) Representative personal account :

These are the accounts which are indirectly related to the natural and artificial persons. For example Prepaid account , capital account , outstanding liability account etc.,

B) Real account :

A real account is used to record the transactions related to assets. The term assets include both tangible and intangible. Tangible assets are the assets held by the business , which can be seen and touched. Where intangible assets are the assets which can’t be seen and touched.

For example Plant and machinery, Buildings , cash account come under real account. And intangible assets like goodwill , patents , trademarks also come under real account.

C) Nominal account :

Accounts which are related to expenses and incomes, losses and gains.
For example interest paid, administration charges, stipend paid etc.,