What is the nature(Real/Personal?Nominal) Please justify why:
share capita A/C
Share allot ac
share forfeiture ac
capital reserve ac
securities premium account
Dear Student,
1) Share Application or share allotment or Share capital A/c all are personal accounts as they represent money from the shareholders and when money is due, these are to be debited because of the rule "Debit the receiver".
And, Share Capital A/c being Capital is nature in increased with every call due so it is to be credited.
2) Share Forfeiture, Capital Reserve and Securities premium, all are nominal accounts as they represent loss and gain to the business concern.
Hope this answers your query. For further doubts, do get back to us.
Keep posting!!
1) Share Application or share allotment or Share capital A/c all are personal accounts as they represent money from the shareholders and when money is due, these are to be debited because of the rule "Debit the receiver".
And, Share Capital A/c being Capital is nature in increased with every call due so it is to be credited.
2) Share Forfeiture, Capital Reserve and Securities premium, all are nominal accounts as they represent loss and gain to the business concern.
Hope this answers your query. For further doubts, do get back to us.
Keep posting!!