Types of account
This query is : Resolved
Guest
Guest
(Querist)
02 November 2011
Is purchase and sales account is a part of real account or nominal acccount?some books say it is a part of real and some say nominal?Can anybody help me out
02 November 2011
It is nominal account only. only stock is real a/c
Message likes :
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Guest
Guest
(Querist)
03 November 2011
Thank you..need to ask purchase is an asset so why it's not a real account?
02 August 2025
Great question! Here’s a clear explanation:
* **Purchase Account** and **Sales Account** are **Nominal Accounts** — because they represent expenses and income respectively, and deal with profits and losses.
* **Real Accounts** relate to assets and liabilities — things you own or owe, like **Stock**, **Cash**, **Machinery**, etc.
Now, why is **Purchase** not a real account if it involves an asset?
* Actually, **Purchase** account records the **expense** or cost of buying goods, not the goods themselves. When you buy stock, the **Stock Account** (a real account) increases, but **Purchase Account** just records the **cost incurred** during the period.
So:
* **Stock** = Real Account (Asset)
* **Purchase** = Nominal Account (Expense)
* **Sales** = Nominal Account (Income)
Hope this clears the confusion! Want me to explain the basic rules of accounting for real, personal, and nominal accounts?
* **Purchase Account** and **Sales Account** are **Nominal Accounts** — because they represent expenses and income respectively, and deal with profits and losses.
* **Real Accounts** relate to assets and liabilities — things you own or owe, like **Stock**, **Cash**, **Machinery**, etc.
Now, why is **Purchase** not a real account if it involves an asset?
* Actually, **Purchase** account records the **expense** or cost of buying goods, not the goods themselves. When you buy stock, the **Stock Account** (a real account) increases, but **Purchase Account** just records the **cost incurred** during the period.
So:
* **Stock** = Real Account (Asset)
* **Purchase** = Nominal Account (Expense)
* **Sales** = Nominal Account (Income)
Hope this clears the confusion! Want me to explain the basic rules of accounting for real, personal, and nominal accounts?
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