Transactions involving nominal accounts which ultimately result in accrual of income to the profit and loss account are transactions relating to incomes and gains.
Incomes
In most transactions of this kind, the second account affected i.e. the account other than the nominal account, would be a current natured account.
Received commission
Dr. Cash/Bank a/c
Cr. Expenditure a/c | Current Asset
Non-Current |
Sold goods on credit
Dr. Debtors a/c
Cr. Sales a/c | Current Asset
Non-Current |
All transactions relating to incomes can be considered to be cross transactions in general.
Gains
In most transactions of this kind, the second account affected i.e. the account other than the nominal account, would be a non-current natured account.
Profit on Sale of Asset
Dr. Asset a/c
Cr. Profit on Sale of Asset a/c | Non-Current Asset
Non-Current |
All transactions relating to losses can be considered to be non-cross transactions in general.
