Question

rent received in advance comes under which account options personal,real,nominal please explain

Answer 1

Answer:

nominal account

Explanation:

rent received in advance recognizes the accounting rule of “Credit the increase in liability”. Examples of income received in advance – Commission received in advance, rent received in advance, etc. Such advances received are treated as a liability for the business.

Answer 2

rent received comes under nominal a/c because

nominal a/c rule is

debit all expenses and losses

cr- all incomes and gains..

and here rent is received so it is credited...