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Accrued Wages / Wages Payab le / Outstanding Wages is not a nominal account as it s h ows t h ose wages expense against w hich still the compa ny did not pay to workers during t he accou nting period. Outstanding wages is also not a real account as it is related wit h livi ng or natural persons. In fact, Outstanding wages is a Representative Personal Account as it s hows certai n workers to w hom the compa ny is liab le to pay for what they did to complete the project. So, the accou nt title “Outstanding Wages” is created to represent all of t he certai n workers to w hom the compa ny is liab le to pay for the period i n w hich wages expe nse incurred b ut not accrued. So, finally, we easily decide t hat outsta nding wages is a personal account and not a real or nominal account.

Commission Received In Advance Is A Representative Personal Account / Commission Received In Advance Is What Type Of Account Advance Commission / Unearned Commission or Commission Paid In Advance is not a nominal Account as it t he commissio n revenue received in advance or w hich is not earned b y the b usi ness b ut still th e services are not rendered during t he accou nting period. Commission received in advance is also not a real account as it is related wit h certai n natural or living persons. However, commissio n received i n advance is a Representative Personal Account as it s hows all of the clie nts from w hom the compa ny received commissio n in advance w hich is not actually earned b y the compa ny as still t he services are not rendered during t he accou nting period. So, Account title “Commission Received In Advance” is created t hat represe nts all of t he certai n persons from w hom the compa ny received commissio n in advance. So, commission recei...

Accrued Salary / Salary Payable / Outstanding Salary is a not a nominal account as it is t he salary outsta nding, accrued or payab le b y the compa ny to employees for w hat they performed duri ng t he accou nting b ut still the payme nt is not received from company. Outstanding salary is not a real account as it is related wit h natural persons or living persons. Actually, “Outstanding Salary” is a Representative Personal Account as it s hows each of the employee to whom the compa ny is liab le to pay against t he services re ndered. Also for more employees, account title as “Outstanding Salaries” for all of certain employees to w h om t h e company is liab le to pay during t he accou nting period. So, Outstanding Salary is a personal account and not a nominal or real account.

Prepaid Rent / Unexpired Rent or Rent Paid In Advance is not a  N ominal Account as it s hows that re nt w hich is paid i n advance b y the compa ny to landlord and against w hich still the services or b e nefits are not received b y the compa ny during t he accou nting period. Prepaid rent is also not a Real Account as it is concerned wit h livi ng or natural persons. Prepaid rent is a representative personal account w hich is a ki nd of personal account. Prepaid rent represents all of t h e landlords or owners to w h om t h e company paid rent in advance during t he accou nting period. So, t h e term “Prepaid Rent” is created. So, we ca n say t hat Prepaid Re nt is a Personal Account b ut it is not related wit h nominal and real accounts.

Outstanding Rent Is W hich Type Of Accou nt? Accrued Rent / Rent Payab le / Outstanding Rent is not a N ominal Account as it is not closed to Income Statement w hile a nominal account always closed for t he accou nting period. Outstanding rent is also not a real account as it is related wit h representative personal account. So, outstanding rent is a Representative Personal Account, w h ic h is a type of personal account, as it is used to s how all of the certai n landlords or owners to w hom the compa ny is liab le to pay re nt during t he accou nting period. All of t he re nt for various mont hs are added up a nd we give a name of “Outstanding Rent Account” to represent all of t h ese rent accounts as it is payab le to certai n la ndlords. T hus, outsta nding rent stands for all of t he la ndlords or owners to w hom the b usi ness did not paid rent during t he mo n th.   So, outstanding rent is considered as a personal account and not a nominal or a real accoun...

Si nce Discount Account is an indirect expense, so it is not a Real Account as real accounts are related to permanent accounts w hi c h are not closed to Income Statement. T hese accou nts havi ng b ala nces w hich are tra nsferred to b ala nce s heet at the e nd of t he accou nting period. Discount account is also not a personal account w hich is dealt with livi ng or natural persons, artificial and representative personal account. However, discou nt account is a nominal account as nominal accounts (Revenues, Expenses, Gains & Losses) or temporary accounts are closed at t h e end of t h e accounting period. For example, trade discount and discount allowed are indirect expenses w h ile discount received is an indirect income so t h ese are considered as nominal accounts w hich are fi nally closed to I ncome Statement for t he accou nting period. So, we can say t hat discou nt account is a nominal account and not real account and personal account.

Balance Sheet Accounts are also called Permanent Accounts or Real Accounts as t hese accou nts are not closed and transferred to b ala nce s heet at the e nd of t he accou nting period. Their balances are transferred to next accounting period by preparing post-closing trial balance at  the e nd of t he accou nting period. Bala nce s heet accou nts include Assets, Liab ilities a nd Owner’s Equity or Equity. All t he temporary accou nts (Expenses and Revenues are not included on b ala nce s heet accou nts. However, the differe nce b etwee n revenues and expenses i.e., net Income or net Profit is added and net Loss and dividend is deducted from owner’s equity or equity account in order to calculate ending equity.