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:

1. Personal Accounts – Deals with people and entities (e.g., customers, suppliers, banks).

2. Real Accounts – Deals with assets and liabilities (e.g., Cash, Bank, Machinery).

3. Nominal Accounts – Deals with income, expenses, gains, and losses (e.g., Sales, Wages, Rent).

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