real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%

Examples of nominal accounts are losses and expenses of gains or income.

the nominal income rose by 3 percent

The nominal income is refer to the actual amount which a person received in perticular time of period may be in month or weekly which doest not have the effet of inflation and which is fixed in any curcumtances , for e g if there is raise in the prise of the commodities it leads the prise to the inflation but there will be no effect on the Nominal income holder as it is fixed,however in the Real income scenario the inflation amount will effect the real income as it is to be deducted from the Bominal income.hence

Real income = Nominal income - inflation ,

Therefore we can say that real Income is the good measure to know the actual purchasing power of the economy and good aggregate to calculate the National Income

Bad debts accounts is a nominal account shown in income statement and use to reduce the accounts receivable amount.