Purchases Allowance Is Which Type Of Account

Is Purchases Allowance A Nominal Account, Real Account And A Personal Account?

In Accounting, Purchases Allowance is not a real account as in real accounts, assets and liabilities are studied i.e., Balance Sheet Accounts.

Purchases allowance is also not a Personal Account. Actually, personal accounts are related with natural or living persons such as Mr. A’s account, capital account, equity account, etc. So, sales allowance is not related with personal account.

Purchases allowance is related with nominal accounts, (theses accounts are related with revenue, gains, expenses and losses), as it is a Contra Expense Account which is deducted from Gross / Total Purchases in Income Statement.

So, we can conclude that the purchases allowance is a nominal account but not a real account and personal account.