Nominal account: Learn the difference between

Learn the difference between nominal accounts and real accounts in accounting. Nominal accounts are temporary and affect the income statement, while real accounts are permanent and affect the balance sheet. Learn what a nominal account is, how it differs from a real account , and how to record transactions in it. A nominal account is a temporary account that records income, expenses, gains, or losses in a fiscal year and is closed at the end of it. A nominal account, also known as an income statement account or a temporary account, is a type of account used in accounting to record revenues, expenses, gains, and losses. Nominal Accounts Examples List: 1. Rent account , 2. Commission account , 3. Interest account , 4. Discount Received account , 5. Depreciation account , 6. Bad debts ...