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

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Question

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

Outstanding salary is a nominal account.

Options

  • True

  • False

MCQ
True or False

Solution

This statement is False.
Salary payable to an employee means an outstanding salary. As an employee (person) is involved, an outstanding salary is nothing but a personal 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]

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Balbharati Book Keeping and Accountancy [English] 11 Standard Maharashtra State Board
Chapter 2 Meaning and Fundamentals of Double Entry Book-Keeping
EXERCISE | Q 4. 6) | Page 40

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