"Agree the breakdown of finished goods, work?in?progress and raw materials disclosed in the financial statements to the account codes within the nominal ledger."
Q1-ma'am why will we record assets, like inventories, in nominal account? Would not they go in Real account? General ledger is meant for SPL transactions(income and expenses I mean).
Q2- what is the difference between personal account and real account? I know its an F3 level doubt, but plsssssss if you don't mind answering maam...
Q3- maam i don't quite get this procedure, can you explain its application in real life with an example if possible?
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4y ago#1Are you confusing words "nominal" "real" as used in the context of interest rates?
In accounting there is one "general" ledger - which historically was called the "nominal" ledger - the old term is still used not not so much.
There is no such thing as "real" account.
"Personal" accounts are generally used for unincorporated business - sole traders and partnerships - for separating out from business transactions those which are the owners'/proprietors'/partners'.
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