Examples of Nominal or Fictitious Accounts

Nominal accounts may be expenses and losses or incomes and gains. Therefore, the accounts of expenses and losses are debited, and the accounts of incomes and gains are credited.

The rule for debiting and crediting nominal accounts may be explained with the help of the following examples:

1.Paid rent Rs.100.

In this transaction, the nominal account involved is Rent Account. Rent paid is an expenses. So, Rent Account has to be debited.

2.Paid salary Rs. 500.

Here, the nominal account involved is Salary Account. Salary is an expense. Therefore, Salary Account has to be debited.

3.Received commission Rs.100.

In this transaction, the nominal account involved is Commission Account. Commission received is an income. So, commission Account has to be credited.

4.Received Interest on bank deposit Rs.100.

The nominal account involved in this transaction is Interest Account. Interest received is an income. So, Interest Account has to be credited