Question

classify the following accounts as to real, nominal and personal and rewrite : bank balance​

Answer 1

Answer:

Thus, an account is an individual and a formal record of a person, firm, company, asset, liability, goods ... Real Accounts; Nominal Accounts.

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Answer 2

Real Accounts: These are the accounts of all the assets and liabilities of the organization. We do not close these accounts at the end of the accounting year and appear in the Balance Sheet. Thus, we carry forward the balances of these accounts to the next accounting year. Therefore, we can also say that these are permanent accounts.

Nominal Accounts: Nominal Accounts are the accounts relating to the expenses, losses, incomes, and gains. These are temporary accounts and thus we need to transfer their balances to Trading and Profit and Loss A/c at the end of the accounting year. Therefore, these accounts have no balance to be carried forward next year as they are closed.