WAEC Accounting 2012 Theory — Question 1

Model answer

(a) Personal Account: This can be defined as all accounts of people that relate with business. In personal account, we debit receiver and credit the giver. (b) Real Account: These are the accounts of items that can be seen and touched such as fixed assets. In real account, we debit receiver and credit giver. (c) Nominal Account: This is the opposite of real account. It deals with items that cannot be seen and touched such as income and expenditure. In nominal account, we debit the giver and credit the receiver. (d) Liabilities Account: It is an account that is used to record all the indebtedness of a business. In this type of account, we debit receiver and credit giver. (e) Asset Account: This can be defined as the account used to record all assets of the business, fixed or non-fixed asset. In this account, we debit receiver and credit giver.