Ans:
Accounts that are not nominal, like Drawings by the proprietor, amount spent on Investments in assets and their sale values, Cash withdrawn and deposited, etc. Only the income or expenditure, Gain or loss portion, of any transaction, is transferred to the Profit and Loss account. For example, if an asset valued at 20,000 is sold for 15,000. Here there is a loss of 5,000. So only the portion of the loss of 5,000 is debited to the Profit Loss account, and not the entire income of 15,000 is to be credited to the account.