Nominal account and real account

Question

Describe in brief each nominal account and real account with illustration?

Answer 1

Real Account: is an account of Liabilities and assets. Sorts of Real account

- Furniture Account
- Land Account
- Machinery Account
- Building Account
- Goodwill Account
- Patents & Trade Marks Account.

Nominal Account: It is an account of expenses or incomes. Sorts of Nominal account:

- Salary Account,
- Commission Paid or Received Account,
- Telephone Expenses Account,
- Wages Account,
- Printing and Stationery Account,
- Interest Paid or Received Account.