Types of Account in Tally Prime

Types of Account in Tally

1. Personal Accounts

Definition: These accounts are related to individuals, firms, companies, or organizations.
Examples:

• Debtors (customers who owe money)
• Creditors (suppliers or vendors to whom money is owed)
• Bank Accounts
• Capital Accounts (owner's capital)
• Rule: Debit the receiver, Credit the giver."

2. Real Accounts

Definition: These accounts represent assets, liabilities, and property.
Examples:

• Cash Account
• Bank Account
• Land & Buildings
• Machinery, Vehicles, and other fixed assets

Rule: "Debit what comes in, Credit what goes out."

3. Nominal Accounts

Definition: These accounts represent income, expenses, gains, and losses. These accounts are temporary and are closed at the end of the accounting period.
Examples:

• Income Accounts (Sales, Interest, Rent)
• Expense Accounts (Wages, Rent, Utility Bills)
• Loss and Gain Accounts

Rule: "Debit all expenses and losses, Credit all incomes and gains.

Summary of Account Types:

• Personal Accounts – Deals with people and entities (e.g., customers, suppliers, banks).
• Real Accounts – Deals with assets and liabilities (e.g., Cash, Bank, Machinery).
• Nominal Accounts – Deals with income, expenses, gains, and losses (e.g., Sales, Wages, Rent).

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