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Whts the differnce in Real & Nominal accounts?

Its key to prepeare financials

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Question ajoutée par Ibrar Ahmad Khan , Senior Accountant , National Logistic Cell
Date de publication: 2019/02/19
Arafat Hamza
par Arafat Hamza , Financial Accountant , Tiba for Importing and Trading Auto Spare parts

  • Real accounts are balance sheet accounts except owner's drawings account.Also called permanent accounts.they are not closed at the end of the accounting period and begin the next accounting period with a beginning balance equal to the ending balance of the last period. 
  • Nominal accounts are income statement accounts.Also called temporary accounts.they are balance that should be closed at the end of the accounting period and begin the next accounting period with a zero balance.Examples : revenues, expense.

Utilisateur supprimé
par Utilisateur supprimé

Things which are in existence (physical existence) like vehicles, buildings, stocks, etc. comes under real accounts. All the other impersonal accounts are nominal accounts. Assets and liabilities like goodwill, prepaid expenses, deferred assets and liabilities and equity such as capital and, revaluation reserve etc. and PnLs items are nominal

Ibrar Ahmad Khan
par Ibrar Ahmad Khan , Senior Accountant , National Logistic Cell

Real accounts are Balance sheet items & nominal accounts are are profit & loss items.

 

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