Which of the following is true? • Nominal Account- These accounts are
Right Answer is: A
• Nominal Account- These accounts are the general ledger accounts that are closed at the end of each accounting year & are related to income/ gains and expenses/losses. Wage account is a Nominal account. General rule for Nominal account is debit all the expenses and losses & Credit all incomes and gains.
• Real Account- These accounts are the general ledger accounts related to assets or properties that are not closed at the end of each accounting year & their balances are carried over for the next accounting perioD. General rule for Real account is debit what comes in & Credit what goes out.
• Personal Account- These accounts prepared for companies, firms,
individuals, etc. Debtors account, Bank Account are examples of Personal Account.