Classify the following accounts under personal, real or nominal accounts:

(i) Commission Paid (ii) Commission Received

(iii) Commission Accrued (iv) Prepaid Salaries

(v) Leasehold Property A/c (vi) Discount Allowed

(vii) Carriage Inwards A/c (viii) Life Insurance Corporation of India

(ix) Drawings A/c (x) Rent Received in Advance

(xi) Debtors (xii) Sales A/c

(xii) Rent Paid in Advance (xiv) Bank Overdraft

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Solution

Classification of Accounts

Personal Accounts Real Accounts Nominal Accounts

(iii) Commission Accrued (v) Leasehold Property Account (i) Commission Paid

(iv) Prepaid Salaries (ii) Commission Received

(viii) Life Insurance Corporation of India (vi) Discount Allowed

(ix) Drawings Account (vii) Carriage Inwards Account

(x) Rent Received in Advance (xii) Sales Account

(xi) Debtors

(xiii) Rent Paid in Advance

(xiv) Bank Overdraft

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Q. Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2017 from the following Balances of Mr. Sardari Lal :

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Creditors – Trade	30,000	Purchases	1,71,000
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Rent Received	600	Wages	23,000
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Cash in hand	110

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Payment to Creditors Rs. 1,04,400,
Bills receivable collected Rs. 48,000,
Bills payables discharged Rs. 37,200.
Cash sales deposited Rs. 34,400,
Cash Purchases Rs. 2,000 (by cheque).
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Drawings Rs. 30,000,
Commission received Rs. 6,000,
Wages paid Rs. 48,000,
Salaries paid Rs. 26,000,
Rent paid Rs. 17,600,
Insurance premium paid Rs. 3,200,
Carriage inwards paid Rs. 1,000,
Advertising paid Rs. 1,320
Bank balance as at April 1, 2017 Rs 17,400.

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(viii) Closing Stock ₹ 3,000.

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(i) Commission Paid	(ii) Commission Received
(iii) Commission Accrued	(iv) Prepaid Salaries
(v) Leasehold Property A/c	(vi) Discount Allowed
(vii) Carriage Inwards A/c	(viii) Life Insurance Corporation of India
(ix) Drawings A/c	(x) Rent Received in Advance
(xi) Debtors	(xii) Sales A/c
(xii) Rent Paid in Advance	(xiv) Bank Overdraft

Personal Accounts	Real Accounts	Nominal Accounts
(iii) Commission Accrued	(v) Leasehold Property Account	(i) Commission Paid
(iv) Prepaid Salaries		(ii) Commission Received
(viii) Life Insurance Corporation of India		(vi) Discount Allowed
(ix) Drawings Account		(vii) Carriage Inwards Account
(x) Rent Received in Advance		(xii) Sales Account
(xi) Debtors
(xiii) Rent Paid in Advance
(xiv) Bank Overdraft