Which of the following is considered as nominal account ?

Correct option is D

The correct answer is (d) Rent

Explanation:
• Nominal accounts record expenses, losses, incomes, or gains for an accounting period.
• Rent is an expense account, so it falls under the nominal account category.
• Nominal accounts are closed at the end of each accounting year by transferring their balances to the Profit & Loss Account.

Information Booster:
• The Golden Rule for nominal accounts: “Debit all expenses and losses, Credit all incomes and gains.”
• Examples: Rent, Salary, Interest, Commission, Discount, etc.
• Nominal accounts show temporary balances that do not appear in the balance sheet.
• These accounts help in determining the net profit or loss of a business.
• They are reset to zero at the start of each new financial year.

Additional Knowledge:
• Copyright – An intangible asset, hence a real account.
• Goodwill – Also an intangible real account representing business reputation.
• Trademark – Another intangible real account, giving legal protection to brand identity.