In accounts,how to we determine the type of account
for eg. sales tax payable is a personal a/c
why??
how do we determine the same for securities premium ,debenture redemption etc......
plzz help
5 Replies
Navneeth Ojha
(Student CA Final )
(116 Points)
Replied 02 December 2015
Personal Accounts: The accounts which represents or relates to Individuals, Firms, Associations, Companies, or a Person.
Real Accounts: The accounts which represents or relates to Assets, Property and all tangable items.
Nominal Accounts: The accounts which represents or relates to Expenses, Losses, Income and Gains.
Security Premium: 1st This cannot be a personal a/c as its not a person or organization.....2nd either real or nominal.....3rd it cannot be real a/c as any thing collected in excess ( security premium) is not an asset....4th thus its a "Nominal Account"
Debenture Redemption: 1st This cannot be a personal account....2nd it should be either real or nominal....3rd it cannot be a real account as it represents liability or an obligation...4th Thus it is also a "Nominal Account"...
Hope u are clear now.
Yamini dugar
(Student CA IPCC)
(240 Points)
Replied 03 December 2015
can u plzz say then why is sales tax payable is a personal account....
Navneeth Ojha
(Student CA Final )
(116 Points)
Replied 03 December 2015
Sales Tax is a Nominal account.....as its an expense already paid by the company.
Sale Tax Payable is a personal account....though its a obligation to pay by the company in future, as it is outstanding at the end of the year in the companies balance sheet it would be treated as a persoanl account (personal account: it relates to persons, individual, companies)...
I appreciate if other members would also comment on this
Abhishek
(a)
(27 Points)
Replied 21 May 2016
Cpt accounts
Total Replies : 4
Yamini dugar  02 December 2015
In accounts,how to we determine the type of account
for eg. sales tax payable is a personal a/c
why??
how do we determine the same for securities premium ,debenture redemption etc......
plzz help
Navneeth Ojha  02 December 2015
Personal Accounts: The accounts which represents or relates to Individuals, Firms, Associations, Companies, or a Person.
Real Accounts: The accounts which represents or relates to Assets, Property and all tangable items.
Nominal Accounts: The accounts which represents or relates to Expenses, Losses, Income and Gains.
Security Premium: 1st This cannot be a personal a/c as its not a person or organization.....2nd either real or nominal.....3rd it cannot be real a/c as any thing collected in excess ( security premium) is not an asset....4th thus its a "Nominal Account"
Debenture Redemption: 1st This cannot be a personal account....2nd it should be either real or nominal....3rd it cannot be a real account as it represents liability or an obligation...4th Thus it is also a "Nominal Account"...
Hope u are clear now.
Yamini dugar  02 December 2015
yeah...thank you..
Yamini dugar  03 December 2015
can u plzz say then why is sales tax payable is a personal account....
Navneeth Ojha  03 December 2015
Sales Tax is a Nominal account.....as its an expense already paid by the company.
Sale Tax Payable is a personal account....though its a obligation to pay by the company in future, as it is outstanding at the end of the year in the companies balance sheet it would be treated as a persoanl account (personal account: it relates to persons, individual, companies)...
I appreciate if other members would also comment on this
Total Replies : 4
Yamini dugar  02 December 2015
In accounts,how to we determine the type of account
for eg. sales tax payable is a personal a/c
why??
how do we determine the same for securities premium ,debenture redemption etc......
plzz help
Navneeth Ojha  02 December 2015
Personal Accounts: The accounts which represents or relates to Individuals, Firms, Associations, Companies, or a Person.
Real Accounts: The accounts which represents or relates to Assets, Property and all tangable items.
Nominal Accounts: The accounts which represents or relates to Expenses, Losses, Income and Gains.
Security Premium: 1st This cannot be a personal a/c as its not a person or organization.....2nd either real or nominal.....3rd it cannot be real a/c as any thing collected in excess ( security premium) is not an asset....4th thus its a "Nominal Account"
Debenture Redemption: 1st This cannot be a personal account....2nd it should be either real or nominal....3rd it cannot be a real account as it represents liability or an obligation...4th Thus it is also a "Nominal Account"...
Hope u are clear now.
Yamini dugar  02 December 2015
yeah...thank you..
Yamini dugar  03 December 2015
can u plzz say then why is sales tax payable is a personal account....
Navneeth Ojha  03 December 2015
Sales Tax is a Nominal account.....as its an expense already paid by the company.
Sale Tax Payable is a personal account....though its a obligation to pay by the company in future, as it is outstanding at the end of the year in the companies balance sheet it would be treated as a persoanl account (personal account: it relates to persons, individual, companies)...
I appreciate if other members would also comment on this
Recent Topics
- Cash ledger refund
- Interest free loans from directors in private limi
- Section 194T
- Paying GST on Residential House Construction
- Gst credit ledger input
- Income Tax Filing after Portal Deadline
- LTCG u/s 54 -Time Period Related
- Clarification -GST registration
- TDS on commercial bus insurance payment
- Do we need Environmental Clearance certificate for
Related Threads
CAclubindia
