Question

On which accounting principle is
•Trading account
•P/L account
•Balance sheet
prepared?

Answer 1

Answer:

Trading account - Nominal A/c

Profit and loss ac - Nominal A/c

Balance sheet - Real A/c

Explanation:

Nominal ac rule - Debit all expenses and loses and credit all income and gains

Real Ac - Debit what comes in and credit what goes out

if not balance sheet have Assets and liabilities

assets are the profitable things for the firm all the incomes are registered here

liabilities records all the expenses and losses