Nominal account – Any Account related to expenses and incomes are known as Nominal Account. These are terms of business. You know that purchasing and selling of goods are known as business. Items of expenses- salaries,Rent,RATES, taxes,purchase,printing and stationery,Postage and telegrams, telephone exps etc . Items of income- rent received, Commission received, salary received, subscriptions, lockers rent,Tranfer fees, closing stock etc we will read forward in detail. Now we will know about golden rules of debit and credit. These both rules are very important in account. every thing is imposible without it. These rules are based on account. These rules are used in bank,business, etc
What is the golden rules of debit and credit? Ans- In Personal account,receiver will be debited and giver will be cerdited.
2. In Real account, incoming will be debited and outgoing will be credited .
3. In Nominal account,expenses will be debited and income will be credited. See the examples for identifing of Debit And Credit: Purchased goods from Mohan RS 10000. Who is giver in this sentence?
or Tell me giver in this sentence. Ans- mohan is giver in this sentence. Because He is doing the task of selling. By the way who is purchaser? we will read forward about purchaser.
Deposited in to bank rs 10000.It includes two terms.1BANK 2 Cash which account is bank? bank is personal account. because it is receiver and cash is assests account,it is outgoing.
Sold goods to mohan rs 1000. who is receiver? ans- mohan is receiver. MOHAN is doing task of buying,because mohan is purchaser.
Try to answer these questions: 1. What is nominal account? 2.What is the golden rules of debit and credit? 3. Tell me examples of nominal account 4.Purchased goods from MOHAN rs 1000,tell me giver in this sentence 5.Which account is bank? 6. WHICH account is sales? 7.Which account is commission received? Account is based on four terms. which are as follows: 1 Journal 2 Ledger 3Trial balance 4 Final account