Unearned Consulting Fees Is A Nominal, Real Or A Personal Account

The Type of Account And Normal Balance of Unearned Consulting Fees Would Be What?

Unearned Consulting Fees or Consulting Fees Received in Advance is not a Nominal Account as it is not a revenue account which is related with nominal accounts.

Unearned consulting fees is not a personal account as it is also not related with natural or living persons. Such as Mr. A’s Account which is related with the sole owner and considered as a natural or living person’s account but unearned consulting fees account is not related with personal account.

Yes, unearned consulting fees is a real account as it is related with Current Liabilities which are concerned with real accounts.

The normal, positive, usual or favorable balance of unearned consulting fees is credit. However, when it increases, we credit it and when it decreases, we debit it according to the Rules of Debit and Credit. So, negative, unusual or unfavorable balance of unearned consulting fees is debit.

So, the type of account and normal balance of unearned consulting fees would be a real account and a credit balance respectively.