_______ is a Nominal A/c.

Insurance prepaid A/c

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Insurance premium A/c

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Bank A/c

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Rent outstanding A/c

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Solution

The correct option is B Insurance premium A/c
There are mainly three types of accounts in accounting: Real, Personal and Nominal accounts.
Personal accounts are classified into three subcategories: Artificial, Natural and Representative.
Accounts which are related to expenses, losses, incomes or gains are called Nominal accounts.
Example, Purchase A/c, Salary A/c, Sales A/c, Commission Received A/c, etc. The final result of all nominal accounts is either profit or losses which is then transferred to the capital account.

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Similar questions

Q. 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

Q. Tick the correct match.

$1$ . Current Asset	$1$ . Depreciation
$2$ . Nominal A/c	$2$ . Land
$3$ . Non-Depreciable Asset	$3$ . Insurance A/c
$4$ . Non-Cash Expense	$4$ . Prepaid Rent A/c

Select the correct answer from the options given.

Ending Prepaid Rent, Prepaid Insurance etc.+ Expired Rent, Expired Insurance etc. − Beginning Prepaid Rent, Prepaid Insurance etc. is equal to ___

Give the journal entries for the following adjustments-

(a)Outstanding salary Rs. 3,500.

(b)Rent unpaid for one month at Rs. 6,000 per annum.

(c)Insurance prepaid for a quarter at Rs. 16,000 per annum.

(d)Purchase of furniture costing Rs. 7,000 entered in the purchase book.

Objective type Questions
Classify the following accounts under the types of personal, Real and Nominal account.

1) Life insurance premium A/c
2) Mr. Kulkarnis’s Capital A/c
3) Goods A/c
4) Freight A/c
5) Wages A/c
6) Goodwill A/c
7) Copyright A/c
8) Outstanding income A/c
9) Bank charges A/c
10) Outstanding expenses A/c
11) Sundry income A/c
12) Income receivable A/c
13) Export duty A/c
14) Furniture A/c
15) Import duty A/c
16) Free sample distribution A/c
17) Sundry expenses A/c
18) Discount A/c
19) Drawings A/c
20) Fixed deposit A/c
21) Profit on sale of furniture A/c
22) Office equipment A/c
23) Bank of India A/c
24) Machinery A/c
25) Carriage Outward A/c
26) Loss on sale of machinery A/c
27) Loan A/c
28) Deposits with MSEB
29) Loss by fine A/c
30) Legal expenses A/c

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