I was going through my accounting book. Just when one simple question came and that simple question converted into one annoying headache. Question was identify real, nominal and personal. I was able to solve everything but just when i thought it was over i came face to face with confusion.

Here are those questions I was not able to identify. (Real, nominal and personal)

1) Purchase: It depends on what you’re purchasing. Something like pen, pencil, are day to day expenses, which cannot be considered assets so it is nominal. but if the item you are purchasing has the lifespan of more than a year than it is a asset for example car, computer etc and assets=real.

My Conclusion is it can be both nominal and real.

2) Purchase return: Rule of real says when things goes out it should be considered real. But at the same time there is another rule which says when losses happens it should be considered nominal. So can sales return even be considered loss? Maybe yes, because there is decrease in assets.

My Conclusion it is pure confusion.

3) Sale: When things goes out it should be real, when there is decrease in value it should be considered nominal. I really don’t know how to answer this.

My Conclusion it is pure confusion.

4) Sales return: Assets are coming in so it has to be real? There is just no other option.

My Conclusion it should be real.

5) Provision for doubtful debts: The provision for bad debts means you are already expecting some debtors to go bad and debtors are considered personal. but the only way they are personal is each doubtful debt pertains to a specific person or organization rather than being lumped together into a singular account being called doubtful debts.

My Conclusion it is pure confusion.

just tell me answers and tell me why.

Tomorrow i will ask this to my teacher but it would be nice if i don't have to.

Possibly

You'll never use maths in your life so don't worry about it.