Nominal account: Learn the 3 golden rules of accounting

Learn the 3 golden rules of accounting with detailed examples. Understand real, personal, and nominal accounts , and how to apply these rules effectively. To record transactions every entity must pass journal entries which will then summarize into ledgers. Read on here to know the different types of accounts . Nominal Account A nominal account , in accounting and finance, is a temporary account used to record financial transactions related to revenues, expenses, gains, and losses for a specific accounting period. These accounts are closed at the end of an accounting period, and their balances are transferred to permanent accounts such as the retained earnings account . The debit and credit accounts rules are based on three types of rules, which are also called as types of accounts in accounting. The different account types are Personal Accounts Real Accounts Nominal Accounts Learn Nominal Account Rules, examples, and importance. Explore types, transaction flow, and digital accounting for accurate tracking of nominal account