Question

Which of the following is wrong?
a) All real and personal accounts are transferred to balance sheet
b) Nominal accounts are transferred to P & Laccount
c) Each account is opened separately in ledger
d) Rent is a personal account, outstanding rent is nominal account

Answer 1

Hello Friend

Ans

Option.D

Thank you

Answer 2

Concept:

Real Account- accounts that are related with properties, assets or possessions (tangible or intangible) are known as the real accounts. For example, the Machine account is a real account.

Personal Account- accounts that are related with the individuals, companies, firms etc are personal accounts. These can be of natural persons, artificial persons or even the representative persons. For example, Mohan account is a personal account.

Nominal Account- accounts that are related with the expenditures and income of the organisations are known as the nominal account. For example, wages and salaries account is a nominal account.

Explanation:

• In the given question, Rent is the expenditure of the organisation , hence it is a Nominal Account.

• While Outstanding Rent is opened to pay to a particular landlord, hence it is a Personal Account.

Therefore we can conclude that,

Option D is the correct answer.

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