Is drawings account a nominal account?

Is drawings account a nominal account?

Drawings Account is not a Nominal Account as it is not an expense account. So revenues and expenses account are related with nominal accounts.

Is drawing account a personal account or real account?

Drawing account is real account.

Why drawing account is personal account?

Drawings mean amount withdrawn by the owner from business and the owner’s account is a personal account. Therefore, we can say that the drawings account is a personal account.

Is drawing an asset or liability?

NO. Drawings are the opposite of capital, and such as they are not liabilities! Drawings means that the owner is pulling back his investment in assets.

Is drawing a capital account?

The Drawing Account is a Capital Account Since the capital account and owner’s equity accounts are expected to have credit balances, the drawing account (having a debit balance) is considered to be a contra account.

Which are nominal accounts?

A nominal account is an account in which accounting transactions are stored for one fiscal year. At the end of the fiscal year, the balances in these accounts are transferred into permanent accounts.

What is not a nominal account?

Option a) Outstanding Salaries A/C is the only account which is not a nominal account in the question. This is a balance sheet item and can be categorized under Personal Accounts.