Explain real and nominal accounts with examples
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Nominal Accounts are accounts related and associated with losses, expenses, income, or gains. Examples include a purchase account, sales account, salary A/C, commission A/C, etc. The outcome of a nominal account is either profit or loss, which is then ultimately transferred to the capital account.
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Real account is account of asset use in business
Example-furniture,computer,goodwill,trademark
Nominal account is account of expenses or loss and profit or income of business
Example-wages,carriage paid,salary,theft
Example-furniture,computer,goodwill,trademark
Nominal account is account of expenses or loss and profit or income of business
Example-wages,carriage paid,salary,theft
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