Sales Discount Is A Nominal Real Or A Personal Account

Sales Discount Is Which Kind Of Account?

Sales Discount is not a Real Account which is related with assets and liabilities accounts (Balance Sheet Accounts) such as Cash, Accounts Payable, etc.

Sales discount is also not a personal account as it is not related with natural or living persons. Natural persons are sole owners, partners, shareholders, directors, etc., in a business.

Actually, sales discount is a nominal account as it is a Contra Revenue Account which is deducted from Gross Sales on Income Statement. For example, if we have Gross Sales of Rs. 50000 and we give sales discount of Rs. 5000 to our customer, Mr. A, then this Rs. 5000 of sales discount is a nominal account and it is deducted from Total Sales to Calculate Net Sales i.e., 50000 - 5000 = Rs. 45000.

So, we can say that sales discount is a nominal account but not a real and personal account. So, this is the answer to the question mentioned above.