i. The discount received is a nominal account. ii. The drawings account is a nominal account.

Question

i. The discount received is a nominal account. ii. The drawings account is a nominal account.

State whether the following statements are True or False with reason:

i. The discount received is a nominal account.

ii. The drawings account is a nominal account.

iii. Outstanding salary is a nominal account.

Monjur Alahi

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2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

i. This statement is True.

Discount received in an income for the business. All expenses and income come under the Nominal account.

ii. This statement is False.

The drawing is a Personal account. Drawing means cash on goods withdrawn by the proprietor for personal use. As the proprietor is a Personal account his drawings are also a Personal account.

iii. This statement is False.

Outstanding salary is Personal account. Salary is the amount payable to staff. As he is a person, the amount payable to him is a personal account. It is a Representative Personal account.