Real account

The more the information we need the more the accounting heads we have to maintain.

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Account Types or Kinds of Accounts - Personal, Real, Nominal, real account.

Elements effected by the transaction are

Account types or kinds of accounts - personal, real, nominal

Personal accounts

Tangible

In the initial stages of learning accounting, we assume real accounts to be those representing tangible elements. This is because all the elements that we deal with at this stage have that characteristic.

There is no hard and fast rule that all assets should be tangible.

Eg : goodwill of an organisation is an intangible asset.

There are many other ways the terms real accounts and the term asset can be interpreted and understood. For now, please, stick to the simple understanding that assets are tangible aspects and are thus identified as real accounts.

Nominal accounts

We do not come across such accounts till a later stage of our learning. For now, please, assume that such accounts exist.

Profit on sale of asset a/c - representing the profit made on sale of assets, a gain.

We do not come across such accounts till a later stage of our learning. For now, please, assume that such accounts exist.

Every account head belongs to one of the three types

We use this property to identify the nature of an account sometimes. Where an account cannot be classified under two types, it should be the third type.

Nominal accounts are accounts other than personal and real accounts

Real accounts are accounts other than personal and nominal accounts

Personal accounts are accounts other than real and nominal accounts

Accounting system - minimum accounting heads

Where the information needed by the organisation is very minimal, it can account for the transactions relating to its business with a minimum of four accounting heads.

Assets and liabilities

Assets a/c

All the real accounts and the personal accounts representing debtors are to be assumed to be represented by the account head named asset a/c. Asset a/c would take the place of furniture a/c, machinery a/c, land a/c, buildings a/c, shyam's a/c (debtor), bank a/c, cash a/c etc.

Liabilities a/c

Liabilities are generally made up of personal accounts representing owned capital and loaned capital. Liabilities a/c would take the place of capital a/c, ram's a/c (creditor) etc.

Note : assets and liabilities include only accounts of the type real and personal.

Incomes/gains and expenses/losses

Expenses/losses a/c

All the nominal accounts representing expenses and losses are to be assumed to be represented by the account head named expenses/losses a/c

Incomes/gains a/c

All the nominal accounts representing incomes and gains are to be assumed to be represented by the account head named incomes/gains a/c

Minimum five account heads

Thus to have a clear and better understanding/information regarding liabilities, the liabilities a/c is replaced by two accounts: capital a/c and liabilities a/c.

The more the information we need the more the accounting heads we have to maintain.

Therefore, the minimum accounting heads to be maintained would be 5 i.E. Capital a/c, liabilities a/c, assets a/c, expenses/losses a/c, incomes/gains a/c.

Elements effected by a transaction - identifying account type

The business is proposed to be started.

Started business with a capital of 1,00,000.

Since capital in the form of cash is being brought into the business, capital increases by 1,00,000 and cash increases by 1,00,000

Elements effected by the transaction are

Bought furniture for cash 25,000

Since furniture is being bought by paying cash, the value of furniture increases by 25,000 and the cash available with the business would reduce by 25,000.

Elements effected by the transaction are

Bought goods for cash 25,000 from M/s roxy brothers.

Since goods are bought by paying cash, the value of goods increases by 25,000 and the cash available with the business would reduce by 25,000.

Elements effected by the transaction are

Bought goods from mr. Shyam rao on credit for 10,000.

Since goods are bought on credit, the value of goods increases by 10,000. The liabilities of the business would increase by 10,000. This liability is indicated by an element identified by the name of the vendor who gave the goods on credit i.E. Mr. Shyam rao.

Elements effected by the transaction are

Sold goods for cash 20,000 to mr. Peter.

Since goods are sold by taking cash, the value of goods decrease by 20,000 and the cash available with the business would increase by 20,000.

Elements effected by the transaction are

Sold goods on credit to M/s bharat & co., for 10,000.

Since goods are sold on credit, the value of goods decreases by 10,000. A new asset in the form of a debtor (those who owe us) is created. The new asset is indicated by an element identified by the name of the organisation which purchased the goods on credit i.E. M/s bharat & co.

Elements effected by the transaction are

Paid cash into bank 60,000.

Since cash is paid into bank, the available cash reduces by 60,000. The amount paid into the bank is held by the bank on our behalf. The bank has to pay us the same whenever we ask for it. The bank therefore stands in the position of a debtor to us (those who owe us money). The amount of balance in the bank which is newly created increases from zero by 60,000.

Elements effected by the transaction are

Paid cash to mr. Shyam rao, 5,000

Since cash is paid to mr. Shyam rao, the available cash reduces by 5,000 and the liability in the name of mr. Shyam rao (the amount due to him) also reduces by 5,000.

Elements effected by the transaction are

Received cash from M/s bharat & co., on account, 8,000

Since cash is received from M/s bharat & co., the available cash increases by 8,000 and the asset (debtor) in the name of M/s. Bharat & co (the amount receivable from them) also reduces by 8,000.

Types of accounts: real, personal and nominal accounts with examples

There are credit and debit rules of accounting which is referred as 3 golden rules of accounting. It is also referred as 3 types of accounts in accounting. Here we will also see examples of real account, examples of nominal account as well as examples of personal account. Let us understand further in detail:

Three types of accounts into accounting system are:

1. Real account definition:

Any kind of assets which is either tangible (for example: land, stock, building, etc.) or intangible (for example: goodwill, copyrights, patents, etc.) are categorized into real account.

Frist golden rule – real accounts

debit what’s come in and credit what goes out.

Example of real accounts:

Mr. Joe purchased furniture of rs.75,000/- for cash.

Accounts	debit	credit	applied rules
furniture A/c	75,000	debit what’s come in.
To cash A/c	75,000	credit what goes out.

Wiki Finance pedia - e-learning course on Accounting Wikipedia Chapter - Types of Accounts Real, Personal and Nominal Accounts

Real accounts are one of the three types of accounts. As per the first golden rule of real accounts – furniture A/c is debited with rs.75,000/- and cash A/c is credited with rs.75,000/-.

2. Personal account definition:

Those accounts which are either directly or indirectly related to individuals, companies, firms or organisations are known as personal account. Example of personal accounts includes: kumar account, xyz pvt. Ltd. Account, capital account, prepaid account, bank account, drawings account, creditors account, outstanding account, debtors account, suppliers account, etc.

Second golden rule – personal accounts

debit the receiver and credit the giver

Example of personal accounts:

Mr. Jennifer paid rs.45,000/- to xyz-pqr private limited company by cheque.

Personal accounts are one of the three types of accounts. As per the second golden rule of personal accounts – xyz-pqr pvt. Ltd. A/c is debited with rs.45,000/- and bank A/c is credited with rs.45,000/-.

3. Nominal account definition:

Those accounts which are associated with income, gains, losses or expenses are known as nominal account. At the end remaining balances of nominal accounts are then posted to capital account.

Third golden rule – nominal accounts

debit all expenses & losses and credit all income’s & gain’s

Example of nominal accounts:

Ms. Jenny purchased goods of rs.22,000/- for cash.

Nominal accounts are one of the three types of accounts. As per the third golden rule of nominal accounts – purchase A/c is debited with rs.22,000/- and cash A/c is credited with rs.22,000/-.

Read E-learning tutorial courses - 100% free for all

Basics of accounting for beginners

Chapter 1: what is accounting with examples

Chapter 2: objectives of accounting

Currently reading: types of accounts

Chapter 4: branches of accounting

Chapter 5: accounting process

Chapter 6: what is assets and current assets?

Chapter 7: what is liability and current liabilities?

Chapter 8: what is revenue and expenses?

Chapter 9: what is a single entry system?

Chapter 10: what is double entry system?

Chapter 11: what are journal entries? Format and examples

Chapter 12: what is a general ledger? Format with example

Chapter 13: what is a trial balance? Examples and limitations

Chapter 14: what is a profit and loss statement or income statement?

Chapter 15: what is a balance sheet? Definition, format and examples

Chapter 16: what is managerial accounting? Role, job and objectives

Chapter 17: accounting quiz – basics of accounting for beginners module

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Real account

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Real account is a popular social media app that enables its users to link their account to reality. From socializing to buying things in real life, the app has become indispensable in daily life, especially for second-year high school student ataru kashigawa. He uses real account as a means to escape reality and he feels a sense of belonging and connection to his followers, whom he considers as his friends.

However, ataru's views on friendship drastically change when he gets plunged into the virtual world of real account and is forced to participate in horrific death games alongside ten thousand other users. But these are far from ordinary online death games as dying in the world of real account means that you and all your followers die in reality. To make matters worse, having no followers also means certain death. As aratu begins to participate in these death games, he discovers the existence of yuuma mukai, a teenager who looks just like him. This discovery creates a twist in events.

Betrayed by his so-called friends one by one, ataru is left with one anonymous follower. In this virtual world where a single follower could be the difference between life or death, ataru must survive and complete these games in order to return to the real world.

The first part of real account was serialized in bessatsu shounen magazine until august 9, 2014; the second part—with the chapter count reset to 1—started in weekly shounen magazine on december 24.

The series has been published in english by kodansha comics USA since march 22, 2016.

More reviews reviews

You're sitting there, phone in hand and scrolling through your social network, following people, adding people, commenting on things, your general everyday thing (facebook, twitter, etc).

Suddenly, you're teleported into cyberspace, into a room with people you've never met before.

You are then greeted by the social network mascot. He then announces that you and the people that were using the social network at that time, are to play social network games. "heh, I can do that", is what you're thinking. The mascot then continues to tell you that these games you will be playing is for your life. He proceeds to tell the whole world that you must have people following you.

If you have no followers, you die.

If you fail the mini-game, you and your followers die.

Ask yourself this. How many people will really put their life on the line for you?

Watch how far we humans will sink to grasp onto survival.

The person next to you. Will you exploit them for your own survival? How far will YOU go to survive?

What do others truly think of others?

Though this manga is new and only has 15 chapters so far, it is absolutely gripping. Read as a twin, after losing 99% of his followers, rise from his tears, wills himself to live and fight to win, use his brain to save others, not just himself.

The story really gets you thinking, would I have done that? But most importantly, how far will I get in this scenario?!

Keep in mind when you're reading reviews, how many chapters the reviewer has read. This is displayed in the top right corner of their review. You'll notice for THIS manga - that higher reviews are often made by people who have read fewer chapters. This is because they haven't gotten far enough to realize how disappointing this manga really is.

The outcome of a manga can almost be more important than the journey - but in this case, I couldn't even muster through the journey. Everything began quite clever - but ultimately turned into ridiculous plot twists, unanswered questions, and so much fan service that I had to double-check that this manga wasn't labeled "ecchi" (and frankly - I really should be sending an e-mail to "mangapanda" and "myanimelist" to add "ecchi" as a genre). In fact, I'm surprised it's labeled "shounen" instead of "seinin" for this same reason.

If you want me to elaborate (spoiler-free) - see below.

The art style isn't bad. It's not super-realistic, but it's also not super-cartoony. The artist knows what they're doing, and the art style used for the manga seems fairly mainstream and likeable.

Story - 5
enjoyment - 3
character - 3
(all explained below)

I would've given the story a lower score - but I'm trying to keep in mind that the series did BEGIN very clever. Many people being dragged into a dangerous game of life or death because of a social media app - it sounds cliche, but the writer managed to pull it off and make it fairly interesting and entertaining. The sections of the game were very well-written and strategic. It seemed genius, like the game was nothing but a battle of wits and the author was not afraid to do what he had to do to make it work. Could it have taken a place in my top-5 favorites? Perhaps not - but nonetheless it was clever, entertaining, and interesting.

However - it does not take long for the reader to get the sense that the author doesn't seem to care anymore. As other reviewers have said, characters seem to randomly disappear without another mention of their existence, and the whole tone of the manga changes. This also is very abrupt, so you'll know it's happening when you get there. To me, it felt as though the author was getting bored of writing the same characters over and over again, and so he made up an excuse to get them out of the picture and somehow replace them. It was to the point where I'm going through the pages waiting with baited breath for some characters to reappear (because of an unresolved cliffhanger) - and even after 30 chapters (each chapter is about 40 - 60 pages long, mind you), I'm still wondering if the author entirely forgot about them.

On top of that major flaw (which in itself was almost enough to make me stop caring about the story), things go from being based on intelligence to seemingly being based on a lot of action - and as I mentioned above, the amount of fanservice shoots through the roof. In the beginning there may have been some things here and there that were a bit suggestive or inappropriate, but it was not too much more than the amount shown in other shounen manga. However, eventually it seems like they try to find more and more excuses to insert suggestive (and more than suggestive - outright visible) scenes with girls' bodies - and keep in mind, I'm talking about NAKED. I recently read a scene where two female characters "had to" get naked, in order to carry out a plan that was actually physically impossible in reality (yet it works anyway), just as an excuse to add naked girls. Recently it has felt common-place to see girls in skimpy bikini's, underwear, or just flat-out naked (and it seems they can only keep the 'shounen' tag because the important areas are simply not colored in, which makes it a bit less detailed.)

While once or twice might be forgivable, it feels constant now - and that isn't what I came for. That was about the point that I dropped the manga, because it went from a psychological/shounen to an action/ecchi/seinin (with characters that are randomly gone and plot-twists that are ridiculous and make me care even less about the characters) - which I did not sign up for.

Overall - I'm giving it a 3.

It could've been lower had it not been for the beginning chapters which were fairly well-written. In the beginning it was very intelligent, and there was one twist in particular that I found extremely clever and interesting - but it doesn't matter, because after a while, the manga practically acts like the beginning never happened.

This manga heavily disappointed me. But if you like action and ecchi - this might be your manga once you get past the part where the author drops characters out of existence and changes the tone of the story.

Account types or kinds of accounts - personal, real, nominal

Personal accounts

Tangible

There is no hard and fast rule that all assets should be tangible.

Eg : goodwill of an organisation is an intangible asset.

Nominal accounts

We do not come across such accounts till a later stage of our learning. For now, please, assume that such accounts exist.

Profit on sale of asset a/c - representing the profit made on sale of assets, a gain.

We do not come across such accounts till a later stage of our learning. For now, please, assume that such accounts exist.

Every account head belongs to one of the three types

We use this property to identify the nature of an account sometimes. Where an account cannot be classified under two types, it should be the third type.

Nominal accounts are accounts other than personal and real accounts

Real accounts are accounts other than personal and nominal accounts

Personal accounts are accounts other than real and nominal accounts

Accounting system - minimum accounting heads

Where the information needed by the organisation is very minimal, it can account for the transactions relating to its business with a minimum of four accounting heads.

Assets and liabilities

Assets a/c

Liabilities a/c

Liabilities are generally made up of personal accounts representing owned capital and loaned capital. Liabilities a/c would take the place of capital a/c, ram's a/c (creditor) etc.

Note : assets and liabilities include only accounts of the type real and personal.

Incomes/gains and expenses/losses

Expenses/losses a/c

All the nominal accounts representing expenses and losses are to be assumed to be represented by the account head named expenses/losses a/c

Incomes/gains a/c

All the nominal accounts representing incomes and gains are to be assumed to be represented by the account head named incomes/gains a/c

Minimum five account heads

Thus to have a clear and better understanding/information regarding liabilities, the liabilities a/c is replaced by two accounts: capital a/c and liabilities a/c.

The more the information we need the more the accounting heads we have to maintain.

Therefore, the minimum accounting heads to be maintained would be 5 i.E. Capital a/c, liabilities a/c, assets a/c, expenses/losses a/c, incomes/gains a/c.

Elements effected by a transaction - identifying account type

The business is proposed to be started.

Started business with a capital of 1,00,000.

Since capital in the form of cash is being brought into the business, capital increases by 1,00,000 and cash increases by 1,00,000

Elements effected by the transaction are

Bought furniture for cash 25,000

Since furniture is being bought by paying cash, the value of furniture increases by 25,000 and the cash available with the business would reduce by 25,000.

Elements effected by the transaction are

Bought goods for cash 25,000 from M/s roxy brothers.

Since goods are bought by paying cash, the value of goods increases by 25,000 and the cash available with the business would reduce by 25,000.

Elements effected by the transaction are

Bought goods from mr. Shyam rao on credit for 10,000.

Elements effected by the transaction are

Sold goods for cash 20,000 to mr. Peter.

Since goods are sold by taking cash, the value of goods decrease by 20,000 and the cash available with the business would increase by 20,000.

Elements effected by the transaction are

Sold goods on credit to M/s bharat & co., for 10,000.

Elements effected by the transaction are

Paid cash into bank 60,000.

Elements effected by the transaction are

Paid cash to mr. Shyam rao, 5,000

Since cash is paid to mr. Shyam rao, the available cash reduces by 5,000 and the liability in the name of mr. Shyam rao (the amount due to him) also reduces by 5,000.

Elements effected by the transaction are

Received cash from M/s bharat & co., on account, 8,000

Since cash is received from M/s bharat & co., the available cash increases by 8,000 and the asset (debtor) in the name of M/s. Bharat & co (the amount receivable from them) also reduces by 8,000.

Manga / real account

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20 minutes into the future, japan has been taken by storm by the social network real account, commonly called "reaacc" by the populace. Reaacc has become an ubiquitous part of the nation's culture, having combined all functions of other social networking services into one platform and received support from the government, businesses, and the public. The service has become an essential part of everyone's life, and naturally a big concern of many, if not all of its users, is the followers they accrue. The number of followers one possesses is critical to establishing an online standing.

Kashiwagi ataru may be an ordinary high-school student in real life, but on real account, he has over 1500 followers. That he gained by falsifying information on his public profile. But hey, at least he's #4 in nationwide score rankings for "no answer"!

For the most part, ataru has no social life outside of real account. But his online presence garners him enough attention by the social network's creators for him to be whisked away with the ten thousand most popular users into cyberspace. There, he will have to compete in a reaacc-hosted death game televised across the country. The key to staying alive? Followers willing to put their lives on the line for the participants. And how many care enough to make the commitment?

Created by okushou and watanabe shizumu, the series started off in kodansha's bessatsu shonen magazine in 2014 before moving to weekly shonen magazine (and changing the main cast) in 2015. In 2018 the series moved back to bessatsu. A movie was announced to be in the works in the same year. It's currently licensed by kodansha USA, but is victim to very sporadic releases.

Tropes in real account include:

Bittersweet ending: the real account site is destroyed and its sinister creators masahide and shin are now dead, thus putting an end to its murderous rampage. Despite that, the dark and toxic side of the internet is still there, as shown by a news report detailing the suicide of two middle schoolers who were harassed by online trolls. After his face–heel turn, ataru decides to isolate himself from his friends, though he still keeps them updated occasionally. He and his brother, yuuma, have largely decided to take a break from the internet, though yuuma still believes it has a good side.

Bloodsplattered innocents: ataru and yuuma when they were kids.

Bystander effect: largely in play and one of the biggest dangers present to the participants. Followers can opt out of following a player at any time if they value their lives over the player's. It's incredibly evident in chapter 1, with people leaving others to die in order to save themselves, yet not associating their actions with contributing to murder. Considering that the creators intended for the game to be a social experiment, it's not surprising that this was invoked.

Characters dropping like flies: A LOT of people are introduced, gets a few lines in, then promptly drop like flies.

Conveniently an orphan: ataru and his sister yuri's parents are shown to have died before the start of the series. How ataru and yuri get by is so far unexplained, other than evidently having a home and mentioning that they're poor.

Dark and troubled past: the contestants in the 2nd group didn't exactly have the best circumstances before entering this game. So far, we have:
- An AV actress who failed to meet her father's expectations; he forces her to marry another "loser". Then played for laughs as the couple lose their virginity to each other and she discovered that she can achieve fame by popping another man's cherry, divorcing him, discarding her name and becoming a well-known AV actress.
- A beauty who initially had a beautiful twin while she herself was very ugly, forcing her to wear a mask. After starting a fire to try to kill herself, the pretty twin died saving her, and she herself underwent surgery that ended up making her as pretty as her deceased twin .
- A serial killer who was initially a housewife, whose start of darkness was a burglary gone wrong killing everyone else in her family. While she eventually killed the burglar, she realized that her blood lust was stronger than the love of her family.
- A cultist who was originally a web programmer, indirectly participating in the first real account game to save his boss trapped in the game. The boss died when he failed the re-ACA's live broadcast, with the programmer only surviving because his boss preemptively blocked him before his death.
- A fashionista who's a severe case of so beautiful, it's a curse, cemented by her stepfather killing her mother just to prove his love to her .
- A box-wearing boy who lives in a dice cube. Every week the cube was played in an illegal casino, with the number rolled on it marking his amount of food for the week. Years later he decided to settle the score by gambling his life and rolling the dice cube by himself. While he lost first, a plane suddenly crashed into their location, leaving him as one of the only survivors .
- A dog who turned out to be the traitor for the second real account game. He lived with an owner who trained his intelligence and uploaded the videos to the internet. Unfortunately, the dog discovered recordings of his owner murdering his previous pets - and he intended to make the dog the next victim. Upon the owner's return, the dog was saved when a representative of real account asked him to become a traitor for this session.

Deadly game: one where a person's survival depends on the number of followers he has. If the participant dies in the course of the game, he will die in the real world, with his followers dying alongside him. If his follower count drops to zero, the participant dies alone.

Fanservice: A rather large amount of attention is giving to sexualizing the female cast, even during moments that are supposed to be life-or-death situations.

Honor-related abuse: A wealthy businessman can be seen in chapter 1 saying, "he was a worthless son. It's no big deal."

Humans are bastards: what the game's host, marble, seems determined to prove. It ties into the manga's theme of social media bringing out the worst in people and being a very toxic environment.

I have no son!: A businessman in chapter 1 evidently feels this way, declaring that his son was worthless and meant nothing to him.

Necessarily evil: both masahide eniguma and the protagonists' father (shin kashiwagi), the masterminds behind the killing of billions, made the real account site because they want everyone to understand that the internet is evil.

One-hit kill: yuuma and ayame are alive because they follow each other; if one of them decides to unfollow the other, s/he's dead. Because of that, they don't want any other followers so they won't pull others down with them.

The only one allowed to defeat you: aiji to ataru (actually yuuma.)

Types of accounts: real, personal and nominal accounts with examples

There are credit and debit rules of accounting which is referred as 3 golden rules of accounting. It is also referred as 3 types of accounts in accounting. Here we will also see examples of real account, examples of nominal account as well as examples of personal account. Let us understand further in detail:

Three types of accounts into accounting system are:

1. Real account definition:

Any kind of assets which is either tangible (for example: land, stock, building, etc.) or intangible (for example: goodwill, copyrights, patents, etc.) are categorized into real account.

Frist golden rule – real accounts
debit what’s come in and credit what goes out.

Example of real accounts:

Mr. Joe purchased furniture of rs.75,000/- for cash.

Accounts debit credit applied rules
furniture A/c 75,000 debit what’s come in.
To cash A/c 75,000 credit what goes out.

Real accounts are one of the three types of accounts. As per the first golden rule of real accounts – furniture A/c is debited with rs.75,000/- and cash A/c is credited with rs.75,000/-.

2. Personal account definition:

Those accounts which are either directly or indirectly related to individuals, companies, firms or organisations are known as personal account. Example of personal accounts includes: kumar account, xyz pvt. Ltd. Account, capital account, prepaid account, bank account, drawings account, creditors account, outstanding account, debtors account, suppliers account, etc.

Second golden rule – personal accounts
debit the receiver and credit the giver

Example of personal accounts:

Mr. Jennifer paid rs.45,000/- to xyz-pqr private limited company by cheque.

Personal accounts are one of the three types of accounts. As per the second golden rule of personal accounts – xyz-pqr pvt. Ltd. A/c is debited with rs.45,000/- and bank A/c is credited with rs.45,000/-.

3. Nominal account definition:

Those accounts which are associated with income, gains, losses or expenses are known as nominal account. At the end remaining balances of nominal accounts are then posted to capital account.

Third golden rule – nominal accounts
debit all expenses & losses and credit all income’s & gain’s

Example of nominal accounts:

Ms. Jenny purchased goods of rs.22,000/- for cash.

Nominal accounts are one of the three types of accounts. As per the third golden rule of nominal accounts – purchase A/c is debited with rs.22,000/- and cash A/c is credited with rs.22,000/-.

Read E-learning tutorial courses - 100% free for all

Basics of accounting for beginners
- Chapter 1: what is accounting with examples
- Chapter 2: objectives of accounting
- Currently reading: types of accounts
- Chapter 4: branches of accounting
- Chapter 5: accounting process
- Chapter 6: what is assets and current assets?
- Chapter 7: what is liability and current liabilities?
- Chapter 8: what is revenue and expenses?
- Chapter 9: what is a single entry system?
- Chapter 10: what is double entry system?
- Chapter 11: what are journal entries? Format and examples
- Chapter 12: what is a general ledger? Format with example
- Chapter 13: what is a trial balance? Examples and limitations
- Chapter 14: what is a profit and loss statement or income statement?
- Chapter 15: what is a balance sheet? Definition, format and examples
- Chapter 16: what is managerial accounting? Role, job and objectives
- Chapter 17: accounting quiz – basics of accounting for beginners module
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Opening of accounts

Terminal allows to work with two types of accounts: demo accounts and real accounts. Demo accounts enable working under training conditions, without real money on them, but they allow to work out and test trading strategy very well. They possess all the same functionality as the real ones. The distinction consists in that demo accounts can be opened without any investments, though one cannot count on any profit from them.

Opening of a demo account #

A demo account can be opened by the "file – open an account" menu command or by the same command of the "navigator – accounts" window context menu. Besides, the terminal will offer to open a demo account at the first program start to begin working immediately.

The process of opening an account consists of several steps:

Selecting server

The first stage of account opening is selection of a server to connect to. Addresses of available servers, their names and ping are listed there. The most preferable is the server having the lowest ping. To perform additional checking the ping, you should press the "scan" button. After that the ping information becomes refreshed.

Also in this window you can add a new server to connect to. To do it, press the " add new server" button or the "insert" key. A server can be specified in different ways:
- Write its address and port separated with a colon. For example, 192.168.0.100:443;
- Write its domain name and port separated with a colon. For example, mt.Company.Com:443;
- Write an accurate name of a brokerage company.
As soon as you specify a server, press "enter". To delete a server, select it and press the "delete" key.

Account type #

At this stage a user can specify details of an existing trade account or start creating a new one.

This window contains three options:
- Existing trade account – if this option is chosen, it is necessary to fill out the "login" and "password" fields with the corresponding account details. A server selected at the previous step is displayed below these fields. You will be authorized at the specified server using the specified account as soon as you press the "done" button.
- New demo account – if you choose this option and press the "next" button, you will go to the creation of a new demo account.
- New real account – if you choose this option you will pass to specifying personal details for sending a request to open a real account.
Personal details

The next stage of opening an account is specifying personal details:

The following data will be requested to open an account:
- Name – the user's full name.
- E-mail – email address.
- Phone – contact telephone number.
- Account type – account type to be selected from the list defined by the brokerage company.
- Deposit – the amount of the initial deposit in terms of the basic currency. The minimum amount is 10 units of the specified currency.
- Currency – the basic currency of the deposit to be set automatically depending on the account type selected.
- Leverage – the ratio between the borrowed and owned funds for trading.
To activate the "next" button and continue registration, it is necessary to flag "I agree to subscribe to your newsletters".

After the registration has successfully completed, a window will appear that contains information about the open account: "login" – the account number, "password" – the password for access, "investor" – the investor's password (connection mode in which it is possible to check the account status, analyze the price dynamics, etc., but no trading is allowed).

After registration has been completed, the new account will appear in the "navigator – accounts" window, and it is ready to work with. At that, the server sends a message to the terminal containing login and passwords of this newly opened account. This message can be found in the "terminal – mailbox" window. Besides, after the account has been successfully registered, it will be authorized automatically.

Attention: if any problems occur at the account opening, technical support service of the brokerage company should be asked for help.

Opening of a real account #

Real accounts, unlike demo accounts, cannot be opened from the terminal. They can only be opened by brokerage companies under certain terms and conditions. Real accounts are marked correspondingly in the "navigator – accounts" window. To start working with them, one must perform authorization.

Nominal account

What is the nominal account?

Nominal accounts are accounts related and associated with losses, expenses, income, or gains. Examples include a purchase account, sales account, salary A/C, commission A/C, etc. The outcome of a nominal account is either profit or loss, which is then ultimately transferred to the capital account.
- The nominal account is an income statement account (expenses, income, loss, profit). It is also known as a temporary account, unlike the balance sheet account ( asset, liability, owner’s equity), which are permanent accounts.
- So nominal accounting starts with a zero balance at the start of every accounting year. Then during the period, it accumulates all the gains and losses and returns to zero balance at the end of every accounting year by transferring/paying the amount/ balances to a permanent account.
Nominal account example

Consider a temporary account like a sales account that is opened for recording the sale of goods and services during the year. At the end of the financial year, the total sales are transferred to the revenue statement account. Similarly, expenses are recorded in the expense account and which again at the end of the year are transferred to the revenue statement account. In the end, the positive/ negative changes (revenue- expenses) are transferred to a permanent account in the balance sheet.

Based on the periodicity of the flow of funds, the account is divided as below.
- An income is a short-term inflow of funds during the fiscal year.
- Expenses are the short-term outflow of the fund during the fiscal year.
- An asset is the long-term inflow of funds whose time horizon can be spread to multiple years, so assets value can be calculated as a present value of future cash flow.
- A liability is a long-term outflow of a fund that is extending beyond the financial year.
The rules of nominal account

The golden rules to record any transaction under nominal accounts are:

1.) debit all the expenses and losses.

2.) credit all the income and gains.

Let us understand the rules of nominal account with the help of an example:

Suppose a good is purchased for rs.15,000 in a cash transaction. To record this transaction, we are affecting two accounts i.E., purchase account and cash account.

The amount will be rs. 15,000 in both debit and credit.

Transferring fund from nominal account to real account

The following journal entries show how the balances in nominal ac are shifted through an income summary account to the retained earnings account-

#1 – shift all rs. 10,000 of revenues generated during the month to the income summary account

#2 – shift all rs. 9,000 of expenses generated during the month to the income summary account (there is assumed to be just one expense account)

#3 – shift the rs. 1,000 net profit balance in the income summary account to the retained earnings account

The preceding entries can be completed manually. However, an accounting software package will handle the transfer tasks automatically, once an authorized user sets the rollover flag in the software to close the old reporting year and shift recordkeeping to the next fiscal year.

Difference between a nominal account and a real account-

When we differentiate these two accounts, the main parameter we consider is the balances in these accounts at the end of the fiscal year.
- As we know, this account starts with zero balance and ends with zero balance, so only this account is called a temporary account. Whereas balance in a real account does not reset to zero at the end of fiscal year, and last year balances get to carry forward to the next fiscal year.
- These are income statement accounts i.E., accounts for recording income, expenses, profit, and losses. In contrast, a real account is linked with a balance sheet account i.E., accounts for recording assets, liabilities, owner’s equity.
- At the end of every fiscal year, the balances in nominal (temporary account) account are transferred to a real account (temporary account) for the net change during the accounting year. In other terms, the nominal account rule is reset to zero, and the balance is carry forwarded to a real account.
- Entries in the nominal account are recorded as per the journal entries concerning time and date.
Nominal account video

Recommended articles

This article has been a guide to what is nominal accounts. Here we discuss the golden rules to record any transaction with examples. Also, we discuss the nominal account vs. Real account. Here are the other articles in accounting that you may like –

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So, let's see, what we have: classification of elements, accounts, account heads into three types of accounts and the basis for classification. At real account

Contents of the article

Account Types or Kinds of Accounts - Personal, Real, Nominal, real account.

Real account

Huge forex bonuses

Account types or kinds of accounts - personal, real, nominal

Personal accounts

Tangible

Nominal accounts

Every account head belongs to one of the three types

Accounting system - minimum accounting heads

Assets and liabilities

Assets a/c

Liabilities a/c

Incomes/gains and expenses/losses

Expenses/losses a/c

Incomes/gains a/c

Minimum five account heads

Elements effected by a transaction - identifying account type

The business is proposed to be started.

Started business with a capital of 1,00,000.

Bought furniture for cash 25,000

Bought goods for cash 25,000 from M/s roxy brothers.

Bought goods from mr. Shyam rao on credit for 10,000.

Sold goods for cash 20,000 to mr. Peter.

Sold goods on credit to M/s bharat & co., for 10,000.

Paid cash into bank 60,000.

Paid cash to mr. Shyam rao, 5,000

Received cash from M/s bharat & co., on account, 8,000

Types of accounts: real, personal and nominal accounts with examples