Question

Salary account is by its nature a _________.

• A. Real Account
• B. Nominal Account
• C. Personal Account
• D. Trading Account

Answer 1

The correct option is B Nominal Account

Accounts are classified in three categories i.e. personal a/c, real a/c and nominal a/c. Account of any person is a personal account, the real account is an account which does not closed at the end of accounting year and the balances are carried over to the next year.

All expense account are nominal account. Salary account is an expense account and is a nominal account.