Rule of nominal account

Question

Why the rule of nominal account is just opposite with the rule of personal account and real account?

Answer 1

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.