Purchases Return Is A Nominal Real Or A Personal Account

Purchases Return Is Which Type Of Account In Accounting?

Purchases Return is not a real account as it is not an asset or a liability account which are studied under real accounts.

Purchases Return is also not a personal account, like a capital account, drawings account, Mr. A’s account or any other natural or living person account, as it is not related with natural or living persons.

Yes, surely, purchases return is a Nominal Account as it is deducted from total purchases on Income Statement or trading account. Since it is a Contra Expense Account, so purchase return is treated as nominal account which includes all revenue and expenses accounts.

So, we can say that purchases returns are nominal accounts but these are not treated as real or personal accounts in accounting.