Nominal accounts are temporary accounts , recording and keeping track of your profits, revenues, expenses, losses and other key debit and credit items of the financials. In accounting, nominal accounts are the general ledger accounts that are closed at the end of each accounting year . The closing process transfers their end-of-year balances from the nominal accounts to a permanent or real general ledger account. Learn the difference between real, personal and nominal accounts in accounting with examples and rules. Nominal accounts are related to expenses, losses, incomes or gains and have no physical existence. Learn the difference between nominal accounts and real accounts in accounting. Nominal accounts are temporary and affect the income statement, while real accounts are permanent and affect the balance sheet.
