Rule of nominal account
Why the rule of nominal account is just opposite with the rule of personal account and real account?
Expert
The cause why rule of nominal account is just opposite with the rule of personal account and real account is that the Nominal Accounts cannot be viewed & touched. Therefore it has a distinct application in accounting logic.
Here I wish to expose the Accounting Rule & elucidate all the 3 accounting rules so that you might understand the accounting logic and learn them and even teach to others. When a person knows such rules then they can be very simply an accounting person (That is not an Accountant). Chartered Accountants and Cost and Management Accountants are a step forward profession however is of Very high Standing with in vast knowledge in the application of Accounting rules and logic in consistence with customary Company Laws & Accounting Standards.
A) Personal Account:
• Debit the Receiver from the company • Credit Giver to company
B) Real Account:
• Debit what comes-in to company • Credit that goes-out from company
C) Nominal Account:
• Debit each and every expenses & loses to company • Credit all incomes or revenues & profits to company
If you view the third Nominal Account all rules talk regarding what happens to the company's BUSINESS - whereas the rest of the rules Personal and Real has what coming-in & going out and who provides & receives to and from the company.
Assume that you are really interested in investing in the shares of Nokia Corporation of Finland that is a world leader in the wireless communication. However, before making the investment decision, you might like to learn about company. Take a look of the website of
Describe JOC in accounting?
Explain what is meant by the Representative office of any bank.
Specify intuition behind NPV capital budgeting framework?
Specify the considerations that could bound extent to which theory of the comparative advantage is practical?
It is, normally, not possible to fully remove both the translation exposure and transaction exposure. In some cases, eradication of one exposure will also eliminate the other. However in other cases, removal of one exposure really creates the other.
State the factors you would consider in the evaluation of the political risk related to the making of FDI in the foreign country?
Explain, how economic well-being of a country is improved through free international trade in the goods and services?
State some of the conditions under which the foreign subsidiary’s financial structure become relevant?
Discuss briefly the cause and the solution(s) to international bank crisis including less developed countries.
18,76,764
1950150 Asked
3,689
Active Tutors
1458362
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!