Cpt accounts

Personal Accounts: The accounts which represents or relates to Individuals, Firms, Associations, Companies, or a Person.

Real Accounts: The accounts which represents or relates to Assets, Property and all tangable items.

Nominal Accounts: The accounts which represents or relates to Expenses, Losses, Income and Gains.

Security Premium: 1st This cannot be a personal a/c as its not a person or organization.....2nd either real or nominal.....3rd it cannot be real a/c as any thing collected in excess ( security premium) is not an asset....4th thus its a "Nominal Account"

Debenture Redemption: 1st This cannot be a personal account....2nd it should be either real or nominal....3rd it cannot be a real account as it represents liability or an obligation...4th Thus it is also a "Nominal Account"...

Hope u are clear now.

yeah...thank you..

can u plzz say then why is sales tax payable is a personal account....

Sales Tax is a Nominal account.....as its an expense already paid by the company. 

Sale Tax Payable is a personal account....though its a obligation to pay by the company in future, as it is outstanding at the end of the year in the companies balance sheet it would be treated as a persoanl account (personal account: it relates to persons, individual, companies)...

I appreciate if other members would also comment on this

Cpt accounts

Total Replies : 4 

  Yamini dugar     02 December 2015

In accounts,how to we determine the type of account

for eg. sales tax payable is a personal a/c

why??

how do we determine the same for securities premium ,debenture redemption etc......

plzz help


  Navneeth Ojha     02 December 2015

Personal Accounts: The accounts which represents or relates to Individuals, Firms, Associations, Companies, or a Person.

Real Accounts: The accounts which represents or relates to Assets, Property and all tangable items.

Nominal Accounts: The accounts which represents or relates to Expenses, Losses, Income and Gains.

Security Premium: 1st This cannot be a personal a/c as its not a person or organization.....2nd either real or nominal.....3rd it cannot be real a/c as any thing collected in excess ( security premium) is not an asset....4th thus its a "Nominal Account"

Debenture Redemption: 1st This cannot be a personal account....2nd it should be either real or nominal....3rd it cannot be a real account as it represents liability or an obligation...4th Thus it is also a "Nominal Account"...

Hope u are clear now.


  Yamini dugar     02 December 2015

yeah...thank you..


  Yamini dugar     03 December 2015

can u plzz say then why is sales tax payable is a personal account....


  Navneeth Ojha     03 December 2015

Sales Tax is a Nominal account.....as its an expense already paid by the company. 

Sale Tax Payable is a personal account....though its a obligation to pay by the company in future, as it is outstanding at the end of the year in the companies balance sheet it would be treated as a persoanl account (personal account: it relates to persons, individual, companies)...

I appreciate if other members would also comment on this