Is Accounts Receivable A Real Or Nominal Account Or Personal Account

 

Accounts Receivable or Sundry Debtor is a Real or Property Account as it is categorized as Current Asset which is shown on balance sheet. It would probably provide benefits to the company in the form of cash received from customers to whom the company sold goods on credit.

For example, goods sold to customers, Mr. A, Mr. B, Mr. C, etc., on account creates Accounts Receivable from whom the business would get the cash amount when they paid to the company against the goods sold to them by the business for the period.

Accounts Receivable is also considered as a personal account as it shows certain number of natural or living customers to whom the business sold goods on account.

Nominal Accounts are considered as Temporary Accounts as these are concerned with expenses and losses and revenues and gains which are closed to Income Statement finally at the end of the accounting period.

So, accounts receivable is considered as a real account or Permanent Account which is transferred to balance sheet during accounting period and not closed unless it is fully received from customers. So it is not a nominal account.