Q.Trading and Profit and Loss account is a ______ in nature.

The Trading and Profit and Loss account is a nominal account because it deals with expenses, losses, incomes and gains.

Under the traditional (British) approach, accounts are classified as:

• Personal accounts — relating to persons, firms and institutions (e.g. debtors, creditors).
• Real accounts — relating to assets and properties (e.g. cash, machinery).
• Nominal accounts — relating to expenses, losses, incomes and gains (e.g. rent, salary, commission received). …