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“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?
Are 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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