Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Nominal accounts means income, gain , revenue, expenses , losses so rent is a expense that's y it is a nominal account

Answer

Nominal account are those account which we can not touch or see so rent we can not see or touch rent account is nominal account

Answer

Rent account is classified as a Nominal account in accounting.

Explanation:
- Nominal accounts are accounts that are related to revenues, expenses, gains, and losses. These accounts are temporary in nature and are closed at the end of an accounting period to determine the net profit or net loss of a business.
- On the other hand, Personal accounts are accounts that represent individuals, organizations, or other entities with whom a business has financial transactions.
- Real accounts are accounts that represent assets, liabilities, and owner's equity. These accounts are not closed at the end of the accounting period and carry forward their balances to subsequent periods.

The rent account is an expense account that records the cost of renting a property or equipment for business purposes. It falls under the category of a nominal account because it represents an expense incurred by the business in generating revenue.

Further details:
- The rent account is debited when the rent expense is incurred. This means that an increase in rent expense is recorded as a debit entry in the rent account.
- At the end of the accounting period, the rent account is closed by transferring its balance to the income statement. This is done by crediting the rent account for the total amount of rent expense incurred during the period.
- The credit entry in the rent account reduces its balance to zero, and the amount is then included in the income statement as an expense.
- The net profit or net loss is calculated by deducting the total expenses, including rent expense, from the total revenue in the income statement.

In summary, the rent account is classified as a nominal account because it represents an expense incurred by the business. It is closed at the end of the accounting period, and its balance is transferred to the income statement to determine the net profit or net loss.

Answer

Rent comes to expenditure. according to the rule of Nominal account that is ''debit all expenses'' Rent account is a nominal A/c

Answer

Nominal a/c

Similar Commerce Doubts

Rent account.

Consider the following statements and identify the wrong statement.

Consider the following statements and identify the wrong statement.

debenture is which account ??

Bill receivable account is a _____ account ?

Top Courses for CommerceView all

Chapter Notes for Commerce

Economics Class 12

Economics Class 11

NCERT Books & Solutions for Commerce

Economics for CBSE Class 12 Board Examinations

Top Courses for Commerce

Top Courses for Commerce

Related Content

Commerce Courses

Other Courses

How To Prepare?

Related Exams

Company