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.
What were the goals of Social Democrats? What did Anarchists want?
Is real gross profit ratio is bigger than standard gross profit ratio?
I have a problem with the following Essay topics illustrated below: Topic A:What is the ultimate goal of yoga practice according to Patanjali, and how do
How is friendship differing from other relationships? Explain the challenges of friendships. What are the common expectations for friendships – give an illustration of each. Explain how friendships fluctuate ove
Conspicuous Consumption: It is the phenomena of spending money on services and goods which are not required but keeping them gives you a high social status. Those things are kept mainly for the purpose of displaying and creating a false image of your
Explain the re-measurement and translation procedure in FASB 52 of translating to the reporting currency the books of the entirely owned affiliate which maintains its books in local currency of country in which it operates, that is different from its functional curren
What is equipment expense or what are equipment expenses?
What are the various aspects of Creativity on an individual in the creative industry ?
State the intuition of discounting several cash flows in APV model at particular discount rates?
Define the term Equipment in Accountancy? Why they are used?
18,76,764
1942057 Asked
3,689
Active Tutors
1412904
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!