In bookkeeping, an account refers to assets, liabilities, income, expenses, and equity, as represented by individual ledger pages, to which changes in value are chronologically recorded with debit and credit entries.
Examples of common financial accounts are sales, accounts[1]receivable, mortgages, loans, PP&E, common stock, sales, services, wages and payroll.
The system of recording, verifying, and reporting such information is called accounting.
The net positive or negative balance (profit or loss) of the revenue statement account is transferred to reserves or capital account as the case may be.
The classification of accounts into real, personal and nominal is based on their nature i.e. physical asset, liability, juristic entity or financial transaction.