Question

What is the difference between Nominal A/C, Personal A/C and Real A/C?​

Answer 1

Answer:

The Golden Rule of Nominal Account says, “Debit All Expenses and Losses, Credit All Incomes and Gains”. Whereas, Golden Rule of Real Account says, “Debit What Comes In, Credit What Goes Out”. Thus, Wages A/c will be debited with Rs 1,00,000. Whereas, Cash A/c will be credited with the same amount