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Accounts

kushwanth (intermediate) (80 Points)

13 July 2016

Is Purchase Account is a Real Account Or Nominal Account ? I think it's nominal account but the problem I had faced is that When I was Searching this in ICAI Website it was Mentioned that it is a Real Account. So, please Clarify My Question

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CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 13 July 2016

it is a nominal account..

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kushwanth (intermediate) (80 Points)
Replied 13 July 2016

I agree with you but in ICAI website it was stated that it was Real Account.

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 13 July 2016

ICAI text may give like this

inventory purchases as real account, in that two accounts are there one it is real and the other one is nominal

icai would have written this context,

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kushwanth (intermediate) (80 Points)
Replied 13 July 2016

Then Which account is real and Which Account is Nominal?

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 13 July 2016

purchases is nominal and inventory is real in the example i told....

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kushwanth (intermediate) (80 Points)
Replied 13 July 2016

This is the information that was given in ICAI material once see the third entry in the pic

Attached File : 1650979 20160713182326 purchase.jpg downloaded: 213 times

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 13 July 2016

yes, if you see an entry

inventory purchases, in our books we show as purchases, as it is inventory purchases in full he is treating as real account, if it is stationary purchase then as stationary is not a real account it will be nominal

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 13 July 2016

inventory is real account but on the basis of the attachment purchases has it changes, if inventory purchase it is real, it is just purchase ledger it is nominal, and if stationary purchase it is nominal, if asset purchase it is real

kushwanth (intermediate) (80 Points)
Replied 13 July 2016

From your Statement are you stating that purchase is a real Account??

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 13 July 2016

purchases always will not be nominal depends on the purchase....

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kushwanth (intermediate) (80 Points)
Replied 13 July 2016

Can I get Some More Examples??

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 13 July 2016

purchases:

1) inventory purchase - real
2) softwate purchase - real
3) building or plant and machinery or land purchase - real
4) patent purchase real
5) stationary purchase nominal
6) spare purchase nominal

bhavani shanker (article) (82 Points)
Replied 13 July 2016

nominal accounts are intagible and real accounts are tangible(inventory)

kushwanth (intermediate) (80 Points)
Replied 13 July 2016

Ok. Thanks Bro!!..

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