Best way to organize accounts

[eschvoca]

>From what I can determine there are two fundamental ways someone can
organize their account trees:

1) Use transaction types at the top level (Assets, Equity, Expenses, Income
Liabilities)

2) Use real-life grouping at the top level (Checking Account, etc)

In (1) if your real-life Banking Account has Assets, Expenses, and
Income then you could have a separate Gnucash Banking Account under
those top level accounts.  In (2) Banking Account would appear once at
the top-level and it could contain sub-accounts of Assets, Expenses,
and Income.  Whatever is at the top level it is easy to get a summary
for all subaccounts.

Currently I've setup my accounts using form (1) but find that I can't
reconsile my statements because there is no overall balance for my
bank account.  I'm tempted to do the big switch to form (2) but I
thought I first check with people to see what their suggestions are.
If I go with (2) can I still get my total income somehow (e.g. from a
report)?

What do people recommend?

-E