Question

The rule for nominal accounts is:

Answer 1

Accounts connected with losses, expenditure, income, or gains are known as nominal accounts. “Debit All Expenses and Losses, Credit All Incomes and Gains,” says the Golden Rule of Nominal Account. “Debit What Comes In, Credit What Goes Out,” reads the Golden Rule of Real Account.

At the end of the accounting year, the balance in a nominal account is closed. A notional account is also known as a transitory account because the balance does not roll over to the next accounting year.