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what is difference between nominal and real account
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Answer / anil gautam
real a/c "dr. what comes in and cr. what goes out"
nominal a/c "dr. alll the expenses and losses cr. all the
profit and gains"
| Is This Answer Correct ? | 64 Yes | 4 No |
Answer / santau das
Real accounts only deals with the assets but nominal
accounts deals with expenses and incomes.
| Is This Answer Correct ? | 38 Yes | 4 No |
Answer / dinesh
Real a/c : Debit what come's in & credit what go's out
nominal a/c : debit all expence & all losess credit all
income & gains
In real a/c whatever things we can see,touch & feel it all
come's under real a/c. eg: bldg,machinery etc..
In nominal a/c we record only expence & losess and income &
gains for eg: interest, depreciation etc.
| Is This Answer Correct ? | 14 Yes | 1 No |
Answer / ashwini
Accounts dealing in properties, such as Cash,Building,
Machinery etc., are known as Real Accounts.
Accounts that record expenses,losses and incomes are called
Nominal Accounts
| Is This Answer Correct ? | 13 Yes | 2 No |
Nominal accounts helps us to know the result of the venture
Real accounts will be placed in Balance sheet and will help
us to know the financial status of the orgonisation
| Is This Answer Correct ? | 19 Yes | 9 No |
Answer / aurosnigdha bose
real a/c includes all assets n properties but nominal a/c
includes all expenses n losses
| Is This Answer Correct ? | 11 Yes | 1 No |
Answer / komu
Real a/c ; Dr' what comes in and Cr' what goes out
Personal a/c ; Dr; the reciver and Cr' the giver and
Nominal a/c ; Dr' all over expense and loss and Cr' all over
incomes and granis (profit)
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / mns
All tangibles are Real account. All intangibles are nominal
account
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / vishakha
NOMINAL A/C SHOWS THE BUSINESS GAINS OR LOSS AND THIS
ACCOUNT SHOW THE FIXED COST AND SEMI VARIABLE COST
EXPENSSES.
REAL A/C SHOW THE WHERE CASH & BANK BALANCES ARE INVESTED
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / shreerama
Real A/c Shows : Dr What comes inside the business
Cr What goes outside the business
Nominal A/c Shows : All incomes or gains is Cr
All Expenses or Loss is Dr
| Is This Answer Correct ? | 0 Yes | 0 No |
expand A C T O
Where we have to take the Director's current account, wages a/c, Accruals, sales tax payable in Balancesheet
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Expand ________BLIS
DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
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