REAL Account vs. NOMINAL Account in Filipino

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Real account vs. Nominal account

FINANCIAL STATEMENT USED
The nominal accounts are noted in the business’s income statement.

The real account transactions are noted in a balance sheet.

TIME OF CLOSING ACCOUNT
Nominal accounts are short term in nature and only last for the accounting period the transactions are happening. They are closed at the end of an accounting period.

Real accounts are not closed at the end of an accounting period. They are left open and the balances carried forward to the next year’s accounting statement.

MAIN PURPOSE
The main purpose of nominal account is to determine the net profits and losses of a business.

The main aim of real accounts is to determine the company’s financial standing in terms of what it owns vs. what it owes.


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Further reading
https://www.accountingcoach.com/blog/...
https://www.dummies.com/business/acco...
http://www.differencebetween.net/busi...

sample income statement https://www.accountingcoach.com/incom... ment/explanation/4