Real account is the account of all assets . For example
Machine A/c, Land A/c etc.
Rule for it........
What comes in Dr.
What goes out Cr.
Nominal account is the account of all expenses and losses.
For example- Salary expenses, Rent Expenses, etc
Rule for it............
All expenses and losses Dr.
All profit and gains Cr.
REAL ACCOUNT NOMINAL ACCOUNT
it is related with it is related with
trangible things,assets intrangible things or
Not with debt. Expenses,Losses,Gains,etc.
ex:cash in hand,cash at Ex:salary,wages,rent,intere
bank, land,building, -st paid etc.
Real Account: It mainly includes two things tangible and
intangible assests.tangible assest are those which can be
touch or seen e.g.building,machinery etc.and intangible
assest are those that cannot be touch or seen
e.g.goodwill,patents ,trademarks etc.The rule of real
account is Debit what comes in Credit what goes out.
Nominal account- In this account we include all expenses and
losses e.g. Bad debts,salary,rent etc
The rule of nominal account ig Debit all expenses and losses
Credit all incomes and gains
If we add the word prefix and suffix to the nominal account
than that becomes a personal account e.g outstanding
salary,prepaid salary,prepaid rent etc and this is called
as a personal account.
Can anyone tell me that when we purchases a fixed asset like
Machinery its our capital Expenditure and after acquetion of
this assets the expenses like unloading loading, and some
other parts for reparing purchase for this in which account
i have to enter.