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B/R and B/P comes under what accounts in traditional approach Whether they are representative personal accounts or real accounts?? Please clarify...
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Revathi Krishnamurthi
Real account represents asset account which has some value. So it has been realised. But B/P or B/R is yet to be encashed. So we treat b/r - dr [debit what comes in], b/p - cr [ cr what goes out], which says we will have some benefit out of it
Sorry,In the previous conversation you have mentioned them as representative personal account can you please justify it!!!
Revathi Krishnamurthi
Real account represents asset account which has some value. So it has been realised. But B/P or B/R is yet to be encashed. So we treat b/r - dr [debit what comes in], b/p - cr [ cr what goes out], which says we will have some benefit out of it
I think fixed assets are also real accounts out of which benefit is to be realised in future so that we cannot classify them as representative personal account
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