State whether the following statement is True or False with reasons: Discount account is a nominal account. - Book Keeping and Accountancy

State whether the following statement is True or False with reasons:

Discount account is a nominal account.

MCQ

True or False

This statement is True.

Discount is a gain earned by the proprietor at the time of sale. Hence it is a nominal account.

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Classification of Accounts

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Chapter 2: Meaning and Fundamentals of Double Entry Book-Keeping - EXERCISE [Page 40]

Chapter 2 Meaning and Fundamentals of Double Entry Book-Keeping
EXERCISE | Q 4. 9) | Page 40

Answer in one sentence only:

State the meaning of Real Account.

Write one word/term or phrase which can substitute the following statement.

Accounts of Expenses and Losses and Incomes and Gains.

Select the most appropriate alternatives from the given below and rewrite the statement:

Machinery Account is ______ account.

State whether the following statement is True or False with reasons:

Discount received is a nominal account.

State whether the following statement is True or False with reasons:

Drawings account is a nominal account.

State whether the following statement is True or False with reasons:

Goodwill account is a real account.

State whether the following statement is True or False with reasons:

Bank loan account is a Nominal account.

Fill in the blank:

Debit what comes in and credit what goes out is the rule of ______ account.

Fill in the blank:

Laptop account is a ______ account.

Classify the following accounts under the types of Personal, Real and Nominal account:

Mr. Rohit’s capital A/c

Classify the following accounts under the types of Personal, Real, and Nominal accounts:

Drawing A/c

Classify the following accounts under the types of Personal, Real, and Nominal accounts:

Prepaid Rent A/c

Classify the following accounts under the types of Personal, Real and Nominal account:

Commission Received A/c