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When a company (or any legal entity) is of the opinion that the value of an asset has appreciated (or) depreciated much than the recorded historical value, revaluation of asset is undertaken. This necessitates us to create an account known as "revaluation A/c". It is understood that, the outcome of revaluation may be a gain (or) loss. As per Golden rule of Accounting, revaluation a/c is a nominal a/c since the a/c measures the gain (or) loss of the asset.
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Is revaluation account a real account?
yes
Is Revaluation account a nominal account?
Yes, a Revaluation Account is considered a nominal account. It is used to record changes in the value of assets and liabilities during the revaluation process, reflecting gains or losses. As a nominal account, it is closed at the end of the accounting period and its balances are transferred to the Profit and Loss Account, impacting the overall financial results.
Is depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is capital account is real account or nominal account?
Real Account
What is difference between revaluation account and realization account?
Revaluation account and Realisation account both are nominal account. the purpose of revaluation account is taking the effect of fluctuations in asset & liabilities in their books while purpose of realisation account is to closing the books of accounts of a comapany or a firm. Revaluation a/c is made when any fluctuation in value of an asset takes place. realisation a/c is made at the time of liquidation of a company or a firm.
Is revaluation account a real account?
yes
Is Revaluation account a nominal account?
Yes, a Revaluation Account is considered a nominal account. It is used to record changes in the value of assets and liabilities during the revaluation process, reflecting gains or losses. As a nominal account, it is closed at the end of the accounting period and its balances are transferred to the Profit and Loss Account, impacting the overall financial results.
Is depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is capital account is real account or nominal account?
Real Account
What is difference between revaluation account and realization account?
Revaluation account and Realisation account both are nominal account. the purpose of revaluation account is taking the effect of fluctuations in asset & liabilities in their books while purpose of realisation account is to closing the books of accounts of a comapany or a firm. Revaluation a/c is made when any fluctuation in value of an asset takes place. realisation a/c is made at the time of liquidation of a company or a firm.
Is accumulated depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is Sales Account nominal or real account?
real accounts
Is suspense account a nominal account?
Not necessarily. It can be of any type. Real, Personal or Nominal.
Liabilities is real accounts or nominal accounts?
nominal account.
Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
Is unearned revenue nominal account?
no!! =) its a real account
Is inventory a nominal account?
real
