Multiple choice

The account which is normally not balanced is

  1. nominal account

  2. real account

  3. personal account

  4. real and personal account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Nominal account is the account which is normally not balanced, but is closed by transferring to trading and profit and loss A/c. It is concerned with incomes and expenses. It is usually not required to take out their balances. We just have to transfer the total. For instance, if the total salary paid is Rs. 3,000/-. First it would be transferred to the Trial Balance then to the profit and loss account. 

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