Since you mentioned nominal accounts in your post, it will help your classmates to let them know that nominal or temporary accounts are all of the accounts that appear on the Income Statement. Here's the formula for the Income Statement again, for everyone, because it's so important to have these formulas memorized:

Revenues - Expenses = Net Income

The real accounts that you mention in your post are also known as permanent accounts. These are all of the accounts that are on the Balance Sheet. Here's that formula:

Assets = Liabilities + Owner's Equity

Thank you for sharing how you are memorizing the rules of debit and credit! Putting them on an index card and taping that card to your bathroom mirror may also be a good idea.

Let's have some additional practice with our journal entries.

Please analyze the following transactions, in General Journal format, letting us know which accounts are debited and which are credited:

Sept. 25: Provided services on account for $1000.

Sept. 30: Collected payment on the services provided on Sept. 25th.....

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