what is the rule for nominal account inaccounting?
1 Answer(s)
Rohit
The rule for Nominal account is Debit all Expenses and Losses, Credit all Incomes and Gains.
A nominal account is a temporary account that reports gains and losses and are usually closed at the end of the accounting year.
Eg. Shift all Rs. 1,00,000 of revenues generated during the month to the income summary account.
Revenue a/c Dr. 1,00,000
To Income summary a/c 1,00,000
Nov 21 2013 09:40 PM
A nominal account is a temporary account that reports gains and losses and are usually closed at the end of the accounting year.
Eg. Shift all Rs. 1,00,000 of revenues generated during the month to the income summary account.
Revenue a/c Dr. 1,00,000
To Income summary a/c 1,00,000