What will be the type of following accounts? Real... Nominal or Personal and why ?
Prepaid expenses, Advance tax and Outstanding expenses. Provision for Doubtful debt
:)
14 Replies
Bopanna
(22 Points)
Replied 10 May 2007
All are representative personal accounts if i am not mistaken.
Bopanna
(22 Points)
Replied 10 May 2007
i confirmed it with my colleagues, it is representative personal accounts.
Skashyapi
(13 Points)
Replied 10 May 2007
Hi - Could you please tell me the something in detail about representative personal account and what logic you have to identify it as personal account.
Sukumara
(40 Points)
Replied 10 May 2007
Dear All
I think - Personal Accounts are those which are related to A Person ( say MOhan, Yogesh etc....)
Real Accounts are those which we can feel ( say cash, Furniture, Building etc)
Nominal Accounts are those which cannot be felt ( say salary, income, rent , expenses etc.)
Hence all the above are basically NOMINAL ACCOUNTS
AM sure about my answer.
regrds,
Sukumar
I think - Personal Accounts are those which are related to A Person ( say MOhan, Yogesh etc....)
Real Accounts are those which we can feel ( say cash, Furniture, Building etc)
Nominal Accounts are those which cannot be felt ( say salary, income, rent , expenses etc.)
Hence all the above are basically NOMINAL ACCOUNTS
AM sure about my answer.
regrds,
Sukumar
Surajit Kashyapi
(31 Points)
Replied 10 May 2007
Hi Sukumar,
Thanks for your reply.
But we are not getting any personal account in Balance sheet but the accounts I mentioned above are Balance sheet item. So I am a bit confused to finally come up to a confirm decision.
Is there any other name for this type of acccounts?
Expecting answer from qualified professionals on this topic as well.
Thanks!!
Surajit
:) :) :)
Thanks for your reply.
But we are not getting any personal account in Balance sheet but the accounts I mentioned above are Balance sheet item. So I am a bit confused to finally come up to a confirm decision.
Is there any other name for this type of acccounts?
Expecting answer from qualified professionals on this topic as well.
Thanks!!
Surajit
:) :) :)
Surajit Kashyapi
(31 Points)
Replied 10 May 2007
I am sorry ... I wanted to mention that only nominal accounts are not Balance sheet item but these accouts are Balance sheet item so that should not be nominal accounts ..... I am sorry for the mistake in above comment.
Surajit
Surajit
CA Ujjawal
(CA)
(37 Points)
Replied 10 May 2007
[quote=324]What will be the type of following accounts? Real... Nominal or Personal and why ?
Prepaid expenses, Advance tax and Outstanding expenses. Provision for Doubtful debt
:)[/quote]
hey all these are personal accounts and i can give u the logic as well.........well from one point of view both prepaid expenses and advance tax are advances to some person..........and hence the accont should have been in the name of such persons.........but as all the money is not given to a single person and hence it represents a group of persons so it has been named as prepaid-expenses and advance tax. ....being expenses paid to different persons and taxes given to different authorities........
Now talking abt outstanding expenses...........it in the similar way is an advance rcvd from some persons but as it is not from a single person so it has been named Outstanding expenses denoting a grp of persons.
similarly provision for doubtful debts.........well it is a rule that all reserves and provisions are personal in nature but providing u the logic........it is something like giving a fixed amt of money to some person so that we can take back from him when we require it.........now as this person is a artificial person and the money goes nowhere so we call this person as reserve or provision.
I hope u all have understood.
In case of any furthewr doubts plz contact me on my E mail......... ujjawal.modi @ gmail.com
Ujjawal Modi
All India 26th rank
CA-CPT Nov 06
Prepaid expenses, Advance tax and Outstanding expenses. Provision for Doubtful debt
:)[/quote]
hey all these are personal accounts and i can give u the logic as well.........well from one point of view both prepaid expenses and advance tax are advances to some person..........and hence the accont should have been in the name of such persons.........but as all the money is not given to a single person and hence it represents a group of persons so it has been named as prepaid-expenses and advance tax. ....being expenses paid to different persons and taxes given to different authorities........
Now talking abt outstanding expenses...........it in the similar way is an advance rcvd from some persons but as it is not from a single person so it has been named Outstanding expenses denoting a grp of persons.
similarly provision for doubtful debts.........well it is a rule that all reserves and provisions are personal in nature but providing u the logic........it is something like giving a fixed amt of money to some person so that we can take back from him when we require it.........now as this person is a artificial person and the money goes nowhere so we call this person as reserve or provision.
I hope u all have understood.
In case of any furthewr doubts plz contact me on my E mail......... ujjawal.modi @ gmail.com
Ujjawal Modi
All India 26th rank
CA-CPT Nov 06
Soumya
(CA Student)
(30 Points)
Replied 20 August 2008
| Originally posted by : Soumya | ||
| " | Plz give JE for better understand | " |
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 22 August 2008
| Originally posted by :Soumya | ||
| " | Originally posted by : Soumya " Plz give JE for better understand " |
|
"
Hi Guys,
Firstly i want to mension that Ujjwal is right that O/s & P/p expenses are represantative Personal A/cs.
Entries for each of them given below
For O/s Exp.:
_-_-_ Expenses A/c.......................Dr.
To OutStanding _-_-_ Expenses A/c
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 22 August 2008
| Originally posted by :Soumya | ||
| " | Originally posted by : Soumya " Plz give JE for better understand " |
|
"
For P/p Exp.:
Prepaid Expenses A/c.......................Dr.
To Expenses A/c
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 22 August 2008
| Originally posted by :Soumya | ||
| " | Originally posted by : Soumya " Plz give JE for better understand " |
|
"
For Provision for Doubtful Debts:
Profit & Loss A/c.................Dr.
To Provision for Doubtful Debt A/c
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 22 August 2008
| Originally posted by :Soumya | ||
| " | Originally posted by : Soumya " Plz give JE for better understand " |
|
"
For Advance Tax:
Advance Tax A/c.................Dr.
To Cash/Bank A/c
pavan
(articleship training)
(23 Points)
Replied 11 September 2014
will advance tax come under p&l a/c ..if comes why?
can anyone reply me..
cell:8985658188
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