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Nominal a/c vs personal & real account

Bhaskar Unnikrishnan CPA CMA (Accounts / Administration) (414 Points)

05 March 2012

Hi Guys, got an interesting thought from net:

Why rule of nominal account is exactly opposite with the rule of personal and real account?

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1 Replies

Raja Panduranga CA, CS, LLB (Cheif Finance Officer) (581 Points)
Replied 05 March 2012

Because Personal and real account are Balancesheet items and Nominal account is profit & loss item, where every debit in BS, there will be credit in PL and vice versa (except BS to BS entries), Hence it is opposite. This is just a Debit / Credit rule.