Q.State, with examples, the traditional classification of accounts and the rule of debit and credit applicable to each.

Before any transaction can be journalised, every account it touches must first be correctly classified.

Personal accounts relate to persons/firms (e.g. Suresh, Capital, Drawings) — debit the receiver, credit the giver. Real accounts relate to assets (e.g. Cash, Furniture) — debit what comes in, credit what goes out. Nominal accounts relate to expenses, losses, incomes and gains (e.g. Rent …

Under the traditional approach, accounts are classified into three types, each with its own rule:

Illustration. Rent of ₹5,000 is paid in cash. Two accounts are affected: Rent A/c (Nominal, an expense — debited) and Cash A/c (Real, going out — credited). Entry: Rent A/c Dr. ₹5,000; To Cash A/c ₹5,000. …

A quick check when classifying: ask 'does this account name a PERSON/institution?' → Personal. 'Does it name a THING the business owns?' → Real. 'Does it name an …

A very common mistake is treating Capital and Drawings as Nominal accounts (perhaps because they seem connected to 'the owner's money'). Both are actually Personal accounts of the proprietor — the business treats …