Question

Under which system of accounting Real and Nominal accounts are not prepared?

Answer 1

Answer:

Profit or loss earned by the business under single entry system is based on the difference between its opening and closing capital.

Hence, such capitals are a result of Statement of affairs which is based on an equation Capital = Assets - Liabilities this equation comprises of only personal and real accounts.

Hence, nominal accounts are not maintained under single entry system.

Answer 2

Answer:

Under single-entry system of accounting Real and Nomainal accounts are not prepared.