Accounts connected with losses, expenditure, income, or profits are known as nominal accounts. A purchase account, a sales account, a wage account, a commission account, and so on… It’s also known as a temporary account, as opposed to the permanent balance sheet accounts (Assets, Liabilities, and Owner’s Equity).
A nominal account’s sole function is to keep track of a company’s revenue and spending so that the net profit or loss for a given period may be computed. Service income, sales income, labour expense, utilities expenditure, commission, supply expenditure, and interest expenditure are examples of nominal accounts.
Accounts connected with losses, expenditure, income, or profits are known as nominal accounts. A purchase account, a sales account, a wage account, a commission account, and so on… It’s also known as a temporary account, as opposed to the permanent balance sheet accounts (Assets, Liabilities, and Owner’s Equity).
A nominal account’s sole function is to keep track of a company’s revenue and spending so that the net profit or loss for a given period may be computed. Service income, sales income, labour expense, utilities expenditure, commission, supply expenditure, and interest expenditure are examples of nominal accounts.
