Classify the following into real account, nominal account and personal account
Factory building Account
Subscription payable Account.
Mr. rohan's loan Account
Loan Account
Intrest on Bank Loan Account
Subscription Account
Bank Loan Account
outstanding intrest on bank loan Account
debtor account
creditor account
bank charges account
bank overdraft account
typewriter account
typewriter repairs account
railway siding account
drawing account
loss in sale of furniture account
stationary account
stock of stationary account
telephone deposit account
audit fees account
Answers
Answer:
ANSWER:
The above mentioned accounts can be classified into the following types of accounts:
• Personal
Name of the account
Description
1) Life Insurance Premium A/c
It is classified as a personal account, since the insurance premium paid represents the amount paid for an individual.
2) Mr. Kulkarni’s Capital A/c
It is the account of a natural person, i.e. an account of a person who is alive. Hence, it can be classified as a personal account.
8) Outstanding Income A/c
It is a representative personal account as it represents the outstanding income from several persons/sources. Hence, it can be classified as a personal account.
10) Outstanding Expenses A/c
It is the representative personal account because it represents the outstanding expenses to a group of people. Hence, it can be classified as a personal account.
12) Income Receivable A/c
It is the representative personal account, i.e. it represents the income to be received from a group of persons. Hence, it can be classified as a personal account.
19) Drawings A/c
It is related to the account of an individual, i.e. proprietor’s account which shows the amount withdrawn by the proprietor from the business for his/her personal use. Hence, it can be classified as a personal account.
23) Bank of India A/c
This account is a personal account as it is related to a banking firm which is an artificial person. All those accounts which are related to a person, whether artificial or natural, are termed as personal accounts.
27) Loan A/c
Loan Account is a representative personal account, as it represents the person from whom the loan is obtained or to whom the loan is given. Hence, it is classified as a personal account.
• Real Accounts:
Name of the account
Description
3) Goods A/c
It is classified as a real account as goods are the tangible assets of a business whose value can be measured in terms of money.
6) Goodwill A/c
It is an intangible asset as it cannot be touched but its value can be measured in terms of money. Hence, it is classified as a real account.
7) Copyright A/c
It is an intangible asset as it cannot be touched but its value can be measured in terms of money. Hence, it is classified as a real account.
14) Furniture
It is the tangible asset of a business whose value can be measured in terms of money. Hence, it is classified as a real account.
20) Fixed Deposit A/c
It is an asset of a business. Hence, it is classified as a real account.
22) Office Equipment A/c
It is the account whose value can be measured in terms of money and treated as an asset of the business. Hence, it is classified as a real account.
24) Machinery A/c
It is the real tangible asset of a business and the value of this asset can be measured in terms of money. Hence, it is classified as a real account.
28) Deposits with MSEB
It is the asset of the business and hence, it is classified as a real account.
• Nominal Account:
Name of the account
Description
4) Freight A/c
It is a direct expense of a business and hence, it is classified as a nominal account.
5) Wages A/c
It is a direct expense of a business and hence, it is classified as a nominal account.
9) Bank Charges A/c
It is an indirect expense of a business. All the expenses whether direct or indirect are classified as nominal accounts.
11) Sundry Income A/c
It represents the income of a business and, thus, it is classified as a nominal account.
13) Export Duty A/c
Export duty is an indirect expense and hence, it is classified as a nominal account.
15) Import Duty A/c
It is a direct expense of a business and hence, it is classified as a nominal account.
16) Free Sample Distribution A/c
It is an indirect expense of a business and thus, it is classified as a nominal account.
17) Sundry Expenses A/c
These are the miscellaneous expenses of a business and hence, they are classified as nominal accounts.
18) Discount A/c
It can be the indirect income (if received) or indirect expenses (if paid) of a business and hence, they are classified as nominal accounts.
21) Profit on Sale of Furniture A/c
It is the indirect income or gain for a business since profit is earned on the sale of furniture and hence, it is classified as a nominal account.
25) Carriage Outward A/c
It is an indirect expense of a business and hence, it is classified as a nominal account.
26) Loss on Sale of Machinery A/c
It is a loss for a business. Hence, it is classified as a nominal account.
29) Loss by Fire A/c
It is a loss for a business. Hence, it is classified as a nominal account.
30) Legal Expenses A/c
These are the indirect expenses of a business and hence, they are classified as nominal accounts.
Answer:
Explanation:
ANSWER:
The above mentioned accounts can be classified into the following types of accounts:
• Personal
Name of the account
Description
1) Life Insurance Premium A/c
It is classified as a personal account, since the insurance premium paid represents the amount paid for an individual.
2) Mr. Kulkarni’s Capital A/c
It is the account of a natural person, i.e. an account of a person who is alive. Hence, it can be classified as a personal account.
8) Outstanding Income A/c
It is a representative personal account as it represents the outstanding income from several persons/sources. Hence, it can be classified as a personal account.
10) Outstanding Expenses A/c
It is the representative personal account because it represents the outstanding expenses to a group of people. Hence, it can be classified as a personal account.
12) Income Receivable A/c
It is the representative personal account, i.e. it represents the income to be received from a group of persons. Hence, it can be classified as a personal account.
19) Drawings A/c
It is related to the account of an individual, i.e. proprietor’s account which shows the amount withdrawn by the proprietor from the business for his/her personal use. Hence, it can be classified as a personal account.
23) Bank of India A/c
This account is a personal account as it is related to a banking firm which is an artificial person. All those accounts which are related to a person, whether artificial or natural, are termed as personal accounts.
27) Loan A/c
Loan Account is a representative personal account, as it represents the person from whom the loan is obtained or to whom the loan is given. Hence, it is classified as a personal account.
• Real Accounts:
Name of the account
Description
3) Goods A/c
It is classified as a real account as goods are the tangible assets of a business whose value can be measured in terms of money.
6) Goodwill A/c
It is an intangible asset as it cannot be touched but its value can be measured in terms of money. Hence, it is classified as a real account.
7) Copyright A/c
It is an intangible asset as it cannot be touched but its value can be measured in terms of money. Hence, it is classified as a real account.
14) Furniture
It is the tangible asset of a business whose value can be measured in terms of money. Hence, it is classified as a real account.
20) Fixed Deposit A/c
It is an asset of a business. Hence, it is classified as a real account.
22) Office Equipment A/c
It is the account whose value can be measured in terms of money and treated as an asset of the business. Hence, it is classified as a real account.
24) Machinery A/c
It is the real tangible asset of a business and the value of this asset can be measured in terms of money. Hence, it is classified as a real account.
28) Deposits with MSEB
It is the asset of the business and hence, it is classified as a real account.
• Nominal Account:
Name of the account
Description
4) Freight A/c
It is a direct expense of a business and hence, it is classified as a nominal account.
5) Wages A/c
It is a direct expense of a business and hence, it is classified as a nominal account.
9) Bank Charges A/c
It is an indirect expense of a business. All the expenses whether direct or indirect are classified as nominal accounts.
11) Sundry Income A/c
It represents the income of a business and, thus, it is classified as a nominal account.
13) Export Duty A/c
Export duty is an indirect expense and hence, it is classified as a nominal account.
15) Import Duty A/c
It is a direct expense of a business and hence, it is classified as a nominal account.
16) Free Sample Distribution A/c
It is an indirect expense of a business and thus, it is classified as a nominal account.
17) Sundry Expenses A/c
These are the miscellaneous expenses of a business and hence, they are classified as nominal accounts.
18) Discount A/c
It can be the indirect income (if received) or indirect expenses (if paid) of a business and hence, they are classified as nominal accounts.
21) Profit on Sale of Furniture A/c
It is the indirect income or gain for a business since profit is earned on the sale of furniture and hence, it is classified as a nominal account.
25) Carriage Outward A/c
It is an indirect expense of a business and hence, it is classified as a nominal account.
26) Loss on Sale of Machinery A/c
It is a loss for a business. Hence, it is classified as a nominal account.
29) Loss by Fire A/c
It is a loss for a business. Hence, it is classified as a nominal account.
30) Legal Expenses A/c
These are the indirect expenses of a business and hence, they are classified as nominal accounts.