Is Accounts Payable A Real Account Nominal Account Or A Personal Account

 

Accounts Payable or Sundry Creditor is a Real Account as it a Permanent Account which is transferred to balance sheet and not a nominal account which is a Temporary Account that is closed to Income Statement finally for the period.

It is also considered as a Personal Account as it relates to natural persons who are the suppliers of the company and having different names such as Mr. A, Mr. B, Mr. C, etc., and hence Accounts Payable or Sundry Creditors account is created to represents all of the suppliers of the company from whom the business purchased goods on account or credit.

For example, if there are three suppliers of the company named as Mr. A, Mr. B and Mr. C, then to represent these suppliers, a certain account name is created which is called as “Accounts Payable” that represents all of the suppliers of the company from whom the company purchased goods on account or credit.