--%>
Assignment Help - homework help

Difference among personal or real account or nominal account

What is the difference among personal or real account and nominal account?

E

Expert

Verified

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.

   Related Questions in Financial Accounting

  • Q : Foreign bonds and Eurobonds List some

    List some of the differences between the foreign bonds and Eurobonds and also describe why Eurobonds make up lion’s share of the international bond market.

    		•
  • Q : Acc company A began operation on

    company A began operation on january 1,2012. The annual reporting period ends December 31.The trial balance on January 1,2013 was as follows

    		•
  • Q : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

    		•
  • Q : Article on Valuation of assets Write an

    Write an article on Valuation of assets serves for both buyers and sellers of goods and services.

    		•
  • Q : Segmented capital market Assume that

    Assume that your firm is operating in the segmented capital market. State some of the actions that you would recommend to diminish the negative effects?

    		•
  • Q : Case study of Drug free at Monochem

    Read the case study entitled ‘Drug-Free and Alcohol-Free at Monochem, Inc. and answer the following questions. 1) Suppose John has developed the ethical codes for the company with an objective of creating a d

    		•
  • Q : Computing cross-rate matrix Compute

    Compute cross-rate matrix for French franc, Japanese yen, German mark, and the British pound. Utilize most recent European term quotes in order to compute the cross-rates in order that the triangular matrix result is same as that of the portion above diagonal in Exhib

    		•
  • Q : Effect of shipping costs Assume that

    Assume that pound is being pegged to the gold at 6 pounds per ounce; on the other hand the franc is being pegged to the gold at 12 francs per ounce. Which, of course, states that equilibrium exchange rate must be the two francs per pound? If existing market exchange r

    		•
  • Q : Styles of love Identify and explain the

    Identify and explain the styles of love. Describe each of these styles and give an example of each.

    		•
  • Q : Non-tradable asset Assume there is

    Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets.  How will non-tradable asset be priced?

    		•