In the double entry book keeping system the accounts are classified into the following three categories:
1. Personal Accounts: These accounts are relating to the names of individuals, firms, companies, bank, co-operative societies, etc.
2. Real Accounts: These are accounts of business assets like Plant and machinery, furniture, land and building, cash and goods, etc.
3. Nominal Accounts (fictitious account): These are the accounts of expenses, incomes, losses and gains.
