Mahesh returned goods. is it a personal, real or nominal account?

Question

Answer

Entry sales return a/c Dr to Mahesh a/c .... it is personal account because debit the receiver and credit the giver and also sales returns will be debited in the books.....

Answer

Entry...

sales Return a/c. Dr...
. To mahesh a/c....

Sales Return account is nominal .....and Mahesh account is real..

Answer

Entry is:- Sales Return A/c. Dr To Mahesh A/c So Mahesh is a personal Account..As rule of personal account is Debit the receiver, Credit the giver... Mahesh is giving goods to firm so it is pesonal account..

Answer

As to me mahesh return goods is real as well as personal account becoz good are coming in the business and mahesh is the giver

Answer

Entry for this will be..sales return A/c.....dr To mahesh A/c.... so,sales return is nominal A/c whereas mahesh is personal A/c...

Answer

Mahesh returned goods. Is it a personal, real, or nominal account?

Explanation:

When analyzing whether Mahesh returning goods is a personal, real, or nominal account, we need to understand the nature of these types of accounts and their characteristics.

1. Personal Accounts:
Personal accounts are related to individuals, firms, or organizations dealing with a business entity. They can be classified into three categories:
- Natural Persons: Accounts related to individuals, such as owners, customers, suppliers, etc.
- Artificial Persons: Accounts related to legal entities, such as companies, partnerships, etc.
- Representative Personal Accounts: Accounts that represent the personal accounts of individuals or artificial persons.

2. Real Accounts:
Real accounts are related to tangible and intangible assets, properties, or possessions owned by a business entity. These accounts are used to record the financial transactions related to these assets. Real accounts can include items such as land, buildings, machinery, vehicles, patents, copyrights, etc.

3. Nominal Accounts:
Nominal accounts are related to incomes, expenses, gains, and losses incurred by a business entity during its operations. These accounts are temporary in nature and are closed at the end of an accounting period. Nominal accounts include items such as sales revenue, salaries expense, rent expense, interest income, etc.

Analysis:
In the given scenario, Mahesh returning goods indicates a transaction related to sales returns or merchandise returns. Let's analyze it based on the above classifications:

- Personal Account: Mahesh is an individual, but the account 'Mahesh' does not represent his personal account. Instead, it represents his interaction with the business entity, making it a representative personal account. Therefore, it does not fall under the personal account category.

- Real Account: Mahesh returning goods does not involve any tangible or intangible assets of the business entity. Hence, it is not a real account transaction.

- Nominal Account: The return of goods by Mahesh is recorded as a sales return or merchandise return, which is considered an expense for the business entity. It affects the sales revenue and reduces the overall income generated. Therefore, Mahesh returning goods falls under the nominal account category.

Conclusion:
Considering the characteristics and nature of the transaction, Mahesh returning goods is classified as a nominal account. It represents a sales return or merchandise return, which impacts the overall income of the business entity.

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