Question

Discount is a personal account.

• A. True
• B. False

Answer 1

The correct option is B False

Nominal accounts are fictitious assets that are associated with expenses, losses, revenues and gains of the firm, such as rent and rates account, travelling expenses A/c, the commission received A/c, interest paid A/c.

Discount can be the indirect income (if received) or indirect expenses (if paid) of a business and hence, they are classified as nominal accounts.