Difference among personal or real account or nominal account
What is the difference among personal or real account and nominal account?
Expert
The total business transactions are classified into three. They are as illustrated:
• Transactions associated to persons • Transactions associated to Things • Transactions associated to incomes and expenditures In accountancy we have three kinds of accounts they are: personal, real and nominal.
The personal account refers to all the transactions associated to the natural persons, artificial persons and representative person’s example: Rama, Ravi, XYZ bank, outstanding rent.
A) First category of transactions fits in to the personal accounts
Rule: A real account comprises things in the business that is possessions.
Debit the receiver and then credit the provider.
B) Second category of transactions associated to: Real accounts example: machinery, buildings, cash and so on.
Rule: Debit that comes in and credit and what goes out
C) The Nominal accounts comprise all the transactions associated to the expenditures, incomes, losses and gains. Example: rent received, rent paid, bad debts, and gain on sale of an asset.
Rule: Debit of all expenses and losses and credit all incomes and gains.
Write down the merits of Budgetary Control?
Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it. Q : Explain Agricultural business Explain Explain the term Agricultural business in term of Accounting?
Explain the term Agricultural business in term of Accounting?
How we form impressions by using stereotypes. Explain? Is stereotyping always negative? Give an example.
Midterm Project The Midterm Project has two parts. First, using the fact pattern below, develop a list of five to eight goals for the law firm. A goal
Define the term Assets in Accounting?
Find and make a graph of the light intensity distribution at the interference between 2 laser beams. The data parameter are : Question Each beam has a equal diameter of 20 micro meter The angle
Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added
Write down the restrictions of standard costing?
State the Historical Cost of Liabilities?
18,76,764
1951029 Asked
3,689
Active Tutors
1412790
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!