Which of the following accounts would appear in the nominal ledger? i. Sanison’s account(a debtor) ii. Motor vehicle account iii. Sales account iv. Rent and rates account
-
A.
i, ii and iii only -
B.
i, iii and iv only -
C.
ii, iii and iv only -
D.
iii and iv only
Correct Answer: Option D
Explanation
Examples of nominal accounts include purchase account, sales account, salary A/C, commission A/C etc. The nominal account is income statement account(expenses, income, loss, profit) and is also known as temporary account unlike balance sheet account ( Asset, Liability, owner’s equity) which are permanent account.