Balance sheet & profit loss accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2015 How to identify the Accounts to be posted in Balance Sheet & Profit Loss. As Real & Personal Accounts are in the Balance Sheet, while Nominal Expenses are shown in Profit & Loss Statement. For Eg.: Pre Paid Expenses as the name suggest is the expenses but is show on the balance sheet under current assets. So how to identify the particular Accounts and post them accordingly?. Please guide me on the same.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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06 August 2015 Nominal accounts - P&L
Personal & real = Balance sheet

Capital ,Loans, Outstanding , receivables etc all are representative personal accounts = balance sheet.