Question

Answer in one sentence only.
What is Nominal Account?

Answer 1

The account relating to business expenses, incomes and gains is called nominal account, e.g., Rent A/c.

Golden rule for nominal A/c is Dr. all expenses and losses and credit all incomes and gains.

For example : 1. Rent paid

Rent A/c Dr. (expense)

To Cash A/c

2. Commission received

Cash A/c Dr.

To Commission received A/c (income)