Question

Classify the following into personal, real and nominal accounts

1. Capital
2. Commission received
3. Building
4. Purchase
5. Chandru​

Answer 1

Answer:

1 personal

2 nominal

3 real

4 nominal

5 personal

Answer 2

Answer:

1. Capital -  Personal Account

2. Commission received -  Nominal Account

3. Building - Real Account

4. Purchase  - Nominal Account

5. Chandru​  - Personal Account

Explanation:

• Personal account

These account types are connected with people. These people might be regular people like Raj's account, Rajesh's account, Ramesh's account, Suresh's account, and so forth.

These people can likewise be artificial people like organization firms, organizations, bodies corporate, an association of people, and so forth.

• Real account

These account types are connected with resources or properties.

• Nominal Account

These accounts types are connected with income or gains and costs /expenses and losses.

So, based on these explanations, the reasons for the above classification are as follows-

1. Capital account is Personal account as it is an artificial person as mentioned above.

2. Commission received is Nominal account as it is related to income or gains.

3. Building is Real account as it is a property.
4. Purchase is Nominal account as it is related to expenses.

5. Chandru is Personal account as it is connected or related to a person.