Rule of nominal account
Why the rule of nominal account is just opposite with the rule of personal account and real account?
Expert
The cause why rule of nominal account is just opposite with the rule of personal account and real account is that the Nominal Accounts cannot be viewed & touched. Therefore it has a distinct application in accounting logic.
Here I wish to expose the Accounting Rule & elucidate all the 3 accounting rules so that you might understand the accounting logic and learn them and even teach to others. When a person knows such rules then they can be very simply an accounting person (That is not an Accountant). Chartered Accountants and Cost and Management Accountants are a step forward profession however is of Very high Standing with in vast knowledge in the application of Accounting rules and logic in consistence with customary Company Laws & Accounting Standards.
A) Personal Account:
• Debit the Receiver from the company • Credit Giver to company
B) Real Account:
• Debit what comes-in to company • Credit that goes-out from company
C) Nominal Account:
• Debit each and every expenses & loses to company • Credit all incomes or revenues & profits to company
If you view the third Nominal Account all rules talk regarding what happens to the company's BUSINESS - whereas the rest of the rules Personal and Real has what coming-in & going out and who provides & receives to and from the company.
Describe Sale return or return inward in brief.
Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate
Explain difference between performing the capital budgeting analysis from the parent firm’s perspective as opposed to the project perspective.
Explain, how international financial management is different from the domestic financial management?
Briefly explain the term Discount and also describe their important types?
Describe how discount and premium are evaluated whenever the assets are priced-to-market. When would law of one price prevail within the international capital markets in case foreign equity ownership restrictions are imposed?
Explain the term Responsibility Accounting and types of responsibility centres with example?
Write down the different brooks of accounting?
What are Personal accounts. Describe their types?
The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance %
18,76,764
1944627 Asked
3,689
Active Tutors
1413895
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!