Vidyalelo
Commerce · Q337

Accounting

Graduate and Post Graduate · Commerce · question 337

Q337

Patents accounts are

A.
Secured loan account
B.
Nominal account
C.
Real account
Answer
D.
Debtors account

Answer: Option C

Solution

Answer: Option C
Solution:
Patents accounts are Real account. Patent right is classified as intangible asset and appear on balance sheet, that is why it is of nature of real account. The balances of real accounts are not cancelled out at the end of an accounting period but are carried over to the next period.