is the purchases account a permanent equity account?

Answer 1

It is not a permanent or real account. It is a nominal, or temporary account - an account that is closed at the end of each accounting year. Included are the income statement accounts (revenues, expenses, gains, losses), summary accounts (such as income summary), and a sole proprietor's drawing account.

Real a/cs are balance sheet a/cs that are carried forward into the next year. Nominal a/cs are closed off each year and are not carried forward.

Answer 2

I'm not familiar with that term put purchases to me are those items I buy so it would become part of cost of goods sold (manufacturing)or and expense account (service). I'm don't know what it has to do with an equity account. Equity accounts have to do with money within the company or distributions of owner's funds.

Answer 3

You have to approach franchise of online broker, like sharekhan, ICICI direct, RMoney, HDFCsecurities. Fill in the forms with sometimes more than 50 signatures, attach documents like bank statement, residence address proof, two photos and they will process your trading account and DMAT account in roughly one-four weeks.

Answer 4

no , the purchases account is nominal account , this account is closed in the end of the year , not show in balance sheet