Explain Real Accounts. List different accounts consisting real accounts in practical circumstances.

Explain Real Accounts. List different accounts consisting real accounts in practical circumstances.


Real accounts are the accounts of assets which the company owns and accounts of liabilities which the company owes. Real Account may also consist of some intangible assets. Real Accounts consist of following types of accounts:

-Building Account
-Furniture Account
-Machinery Account
-Land Account
-Goodwill Account
-Patent Trade Marks Account
What are Nominal Accounts? List accounts consisting the Nominal Account.
Nominal Accounts are the accounts of Incomes, Expenses, Losses and Gains. Nominal Accounts consist of the following types of accounts....
What is the principal of Double Entry system of accounting?
The principal of Double Entry system of Accounting is “Every debit has a corresponding credit” hence the total of all debits has to be equal to the total of all credits.....Advantages of Double Entry system of Accounting...
What is Trial Balance? What does an accurate Trial Balance suggest?
Trial Balance is a summary of all the balances of various ledger accounts and Cash/Book accounts of an organisation....
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