Question

The transaction. “Paid salaries” comes under ............. kind of accounts. Fill in the blank.

Answer 1

nominal

The transaction. “Paid salaries” comes under nominal kind of accounts.

Answer 2

According to the transaction, “Paid salaries” comes under nominal kind of accounts.  When it comes to nominal accounts, they are temporary accounts like income statement accounts.  

Alternatively, they are the accounts which report gains, losses, revenues and expenses.   They are actually closed at the completion of every accounting year.

It means that the account balance of an account holder is transferred to the permanent account.