As I know, there are three classification of accounts, real accounts, personal accounts and nominal accounts. My question is whether General Reserve, Capital Reserve, Revaluation Reserve etc. are real, personal or nominal.
11 Replies
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 23 June 2011
can anyone explain why it is Real a/c and not Nominal A/c ????????
Faiz Ahmed
( Article Trainee)
(1731 Points)
Replied 23 June 2011
One cannot blindly classify any Reserve A/c..
Any reserve is either created against any Asset / Personal A/c / Expenses / Incomes.
So nature of any reserve A/c depends primarily against the classification above.
If Plant revaluation reserve is created, it means the same has been created against Asset(Plant). So Plant Revaluation reserve will be also a Real A/c as per valuation principles.
Similarly, DRR created is against a Representative Personal A/c, so DRR will be personal A/c.
Hope you understood.
Aryan Sharma
(CMA - CA - IPCC)
(44 Points)
Replied 24 June 2011
Can Any one tell me the way of posting a query????
SUDHEESH
(nothing)
(51 Points)
Replied 25 June 2011
gen reserve is nominal sine it is created just by debiting p&l a/c.
suresh
(lecturer in commerce)
(22 Points)
Replied 17 November 2014
But it is given as nominal accounts in model test papers
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