Which of the following is related to nominal account?Bank accountFurniture accountInterest received in advance accountCommission account (2024)

FAQs

Which of the following is related to a nominal account? ›

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 relating to income, revenue, gain, expenses and losses are termed as nominal accounts. These accounts are also known as fictitious accounts as they do not represent any tangible asset.

Answer and Explanation:

The nominal accounts include income, expenses, capital drawings, and dividends.

A nominal account is a general ledger containing the transactions of a business, namely – expenses, incomes, profits and losses. It contains all the transactions that occur in one fiscal year.

Examples of nominal accounts are service revenue, sales revenue, wages expense, utilities expense, supplies expense, and interest expense.

Rent Revenue, Fees Earned, Miscellaneous Expense.

Bank account is an example of personal account and not nominal account. All the accounts related to an individual, a firm or a company are termed as a personal accounts. Hence, bank account is an example of a personal account.

Temporary or nominal accounts can be further classified into three categories: revenue account, expense account and gain and loss account. Temporary or nominal accounts can be further classified into three categories: revenue account, expense account and gain and loss account.

Debit All Expenses and Losses, Credit All Incomes and Gains,” says the Golden Rule of Nominal Account. “

Answer and Explanation:

Rent revenue, fees earned, and miscellaneous expenses are all nominal accounts.

What are real nominal accounts? ›

In economics, the nominal values of something are its money values in different years. Real values adjust for differences in the price level in those years. Examples include a bundle of commodities, such as Gross Domestic Product, and income.

Meaning of Authorised Capital

Known as the registered capital or nominal capital of the company, Authorised Capital is the maximum amount of share capital that a company is allowed to issue to its shareholders as per its constitutional documents.

Answer and Explanation:

Rent revenue, fees earned, and miscellaneous expenses are all nominal accounts.

Profit and Loss account is a Nominal Account, not a Real Account. Nominal Account related to income /gains and expenses/losses of a business. For example: salary, rent commission, etc. Whereas Real account is that which related to assets of an organisation.

Bank account is an example of personal account and not nominal account. All the accounts related to an individual, a firm or a company are termed as a personal accounts. Hence, bank account is an example of a personal account.

Sales Return A/c is a nominal account, and as per the golden rules of nominal account, debit all expenses and losses and credit all income and gains.