Outstanding Legal Fees Is A Nominal Account Or A Real Account Or A Personal Account

 

Accrued Legal Fees / Legal Fees Payable / Outstanding Legal Fees is not a nominal account as it is related with legal fees payable by the company to lawyers or attorneys against the legal services received by the company during the accounting period.

Outstanding legal fees is not concerned with real account as it is related with living or natural persons such as lawyers or attorneys.

Outstanding legal fees is a Representative Personal Account as it shows all of the certain lawyers to whom the company did not paid against the legal services received during the accounting period. So, “Outstanding Legal Fees Account” is created to represent all of the certain lawyers to whom the company liable to pay. Outstanding legal fees is not closed until it is fully paid off.

So, outstanding legal fees is a personal account and not a nominal account or a real account.