Nominal and real accounts

it shows difference between Nominal accounts and real accounts

1. Nominal Accounts & Real Account Daniyal Khalid Student of MBA Institute of Management Studies

2. Nominal Account Nominal Accounts are temporary accounts, such as Income statement accounts Nominal Accounts are closed at the end of each accounting period. Nominal Accounts are as under: Income Expenses Gains Losses

3. Real Accounts Real accounts are permanent accounts, such as balance sheet accounts. Real accounts are not closed at the end of each accounting period. Real accounts are as under: Assets ( Cash, A/R, Building, etc,.) Liability (A/P, Note payable, etc,.) Owner Equity (Common Stock, Retain Earning, etc,.)

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