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Question
Debit - all expenses and losses
Credit - all gains and income is the rule for_______________.
Debit - all expenses and losses
Credit - all gains and income is the rule for_______________.
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Solution
The correct option is C Nominal account
There are mainly three types of accounts: Real, Personal and Nominal accounts.
Accounts which are related to expense, losses, incomes or gains are called Nominal accounts. E.g. Purchase A/c, Salary A/c, Sales A/c, Commission Received A/c.
The golden rule for nominal accounts is:Debit all expenses and losses; Credit all incomes and gains.
There are mainly three types of accounts: Real, Personal and Nominal accounts.
Accounts which are related to expense, losses, incomes or gains are called Nominal accounts. E.g. Purchase A/c, Salary A/c, Sales A/c, Commission Received A/c.
The golden rule for nominal accounts is:
Debit all expenses and losses;
Credit all incomes and gains.
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