Purchase account is a real or nominal account?

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real in case of trading a/c but treated as nominal a/c in case of rectification

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Purchase is an expense itemTherefore,I think it's a nominal account.I hope and this is right answer andIt's helpful​to u

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purchase and sales are either real a\c or nominal a\c

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purchase are expenses which incurred to earn revenue thus debited to P&l A/c while stock in hand is an asset and is nominal account

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Both purchases and sales are nominal accounts because these are expenses and incomes.

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It is definitely real account

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nominal A/C

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Purchases is a real account remember the golden rule which is debit what comes in and credit what goes out

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I think real account

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real account

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Nominal

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Purchase account is a nominal account. As we treat purchase as a business expense and therefore an expense is a nominal account.

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it is nominal account

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what about sales? is it the same way?

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Actual it is a nominal  a/c but in case of CA-CPT examination you should mark it as Real a/c becoz in ICAI correction computer &material it is printed & stated as Real a/c. So in exam mark it as Real a/c.

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real account

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Purchase Alc is nominal Account because at end of accounting period  the balance of purchase alc is transferred to trading alc instead of transferring it to balancesheet

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Either nominal or real

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Purchase account is Nominal account.
Nominal account is the account of expenses and loss and income and gain. purchase is an expense for any firm or organisation.

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purchases and sales both are Nominal Accounts only.

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nominal account

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real account b'coz it indicates flow of goods

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Purchase A/c is a Nominal account

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Purchase a/c is always a nominal a/c

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Is  where all transaction are recorded

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Purchase a/c, sales a/c, sales return a/c, and purchase return a/c
all these are real a/c

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U can treat it as nominal account as well as real account,bt in practice mostly it is considerd as nominal account,in solving practical problems u'll not face any problem in whatever account u considerd it.
reasons behind it:
nominal account:what u purchase is an expenxe for firm and we debit expense account.
real account:goods u purchased are asset of the firm and when assets increase we debit them.

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Nominal accounts. purchase is a expense at the same time income

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Purchases is real account

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Purchase is a real account,
when goods are purchased,the purchase account is debited as a real account but when goods are sold the goods are credited as a nominal account
However,It is both real as well as nominal.

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Introduction:

The purchase account is a nominal account in accounting. It is used to record the expenses related to the purchase of goods or services by a business. Nominal accounts are temporary accounts that are closed at the end of an accounting period to determine the net profit or loss.

Explanation:

Nature of a purchase account:

- A purchase account represents the cost of goods or services acquired by a business for the purpose of resale or for internal consumption.
- It is a revenue expenditure account as it represents the cost incurred to generate revenue.
- The balance in the purchase account reflects the total value of goods or services purchased during a specific accounting period.
- The account is debited when purchases are made, increasing the balance, and credited when returns or allowances are given, decreasing the balance.

Classification of accounts:

- In accounting, accounts are classified into three categories: real accounts, personal accounts, and nominal accounts.
- Real accounts represent assets, liabilities, or owner's equity, which are permanent accounts that continue from one accounting period to another.
- Personal accounts represent individuals or organizations with whom a business has financial transactions.
- Nominal accounts represent revenues, expenses, gains, and losses, and they are temporary accounts that are closed at the end of an accounting period.

Why purchase account is a nominal account:

- The purchase account is considered a nominal account because it represents an expense incurred during the normal course of business operations.
- It is closed at the end of an accounting period by transferring its balance to the trading account which helps in determining the gross profit or gross loss.
- The purpose of nominal accounts is to measure the performance of a business over a specific period of time.
- By keeping the purchase account separate from other accounts, it allows for better analysis and evaluation of the cost of goods sold and related expenses.

Conclusion:

In conclusion, the purchase account is a nominal account in accounting. It represents the expenses incurred for the acquisition of goods or services by a business. Nominal accounts are temporary accounts that are closed at the end of an accounting period to determine the net profit or loss. The purchase account is classified as a nominal account because it represents an expense and helps in measuring the performance of a business over a specific period of time.

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Purchase

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Always nominal a\c because it comes in trading a\c and as well as it's an expense item

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It's a nominal a/c

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