Question

repairs account is which type of account​

Answer 1

repairs account is which type of account

Expense

Answer 2

ANSWER :

❒ According to Traditional Approach or English Approach of accounts classification, Repairs Account is a Nominal Account.

• ➯ Nominal Accounts are the accounts that records the transactions related to losses, expenses, incomes and gains.

• Amount spend on Repairs is an expenses. Hence, the Repairs Account is a Nominal Account.

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❒ According to Modern Approach or American Approach of accounts classification, Repairs Account is an Expenses Account.

• ➯ Expenses Accounts are the accounts that records the transactions related to expenses incurred or losses suffered by an business entity.

• ➯ Amount spend on Repairs is an expenses. Hence, the Repairs Account is an Expenses Account.

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KNOW MORE :

❍ Accounts are classified under two approaches :↦

• ✎ Traditional Approach or English Approach

• ✎ Modern Approach or American Approach

❍ According to Traditional Approach or English Approach of accounts classification, there are three accounts heads :↦

• ✎ Personal Accounts

• ✎ Real Accounts

• ✎ Nominal Accounts

❍ According to Modern Approach or American Approach of accounts classification, there are five accounts heads :↦

• ✎ Assets Accounts

• ✎ Liabilities Accounts

• ✎ Capital Accounts

• ✎ Revenue Accounts

• ✎ Expenses Accounts