nature of account

This query is : Open

Share Report Follow Query Ask a Query

arjun singh mehra

arjun singh mehra (Querist)
Follow

19 September 2016 name the category of account that is not balanced. what is the meaning of balanced in this case.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

19 September 2016 to find out the balance in any account is the purpose of BALANCING the account. So every account needs to be balanced....(Mathematically one can say, where total of debit side equals the total of of credit side, the account has zero / nil balance and hence need not be balanced?????)

arjun singh mehra

arjun singh mehra (Querist)
Follow

19 September 2016 but it is written at some places that nominal accounts are not balanced. what does that mean?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

19 September 2016 the nominal accounts need not be balanced as they are being transferred to Profit & Loss Account OR Income & Expenditure Account, as the case may be.
But, nominal accounts are also balanced......balancing means finding out the balance...that's all...

arjun singh mehra

arjun singh mehra (Querist)
Follow

19 September 2016 cool... thank you sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now