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.
State difference between the Euro-medium-term-note market, the Euro note market, and the Euro commercial paper market?
Normal 0
Big Problem Ltd., an oil refining business uses an allowance system to account for bad debts. At the beginning of the year the allowance had a credit balance of $16,000. The following transactions took place during the year. a) Tot
What happens when creativity based on individual exceptionalism has evolved as part of the orthodoxy of Western managerial practice is applied within a creative business organisation in the business of “symbolic production&rdquo
Explain the term Responsibility Accounting and types of responsibility centres with example?
What is the aim of the research in the screening of elderly abuse at the primary health care level ?
Give a short introduction of the term ‘cash budget’? And also write down the dissimilar techniques to make it?
Define transaction exposure and explain how it is different from the economic exposure?
Explain some of the reasons why international foreign trade is difficult and risky from the perspective of exporter than is domestic trade.
HOMEWORK ASSIGNMENT FOR ADMINISTRATIVE LAW"The problem in today's complex legal environment is that the law is not able to be divided conveniently into segments. Any apparently discrete sect
18,76,764
1924390 Asked
3,689
Active Tutors
1422794
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!