A personal account having debit balance means __________.

he owes the amount

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he is owed the amount

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the profit earned by him

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loss suffered by him

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Solution

The correct option is A he owes the amount
Personal account mean account of any person. Personal may have both the kind of entries i.e. debit and credit. If there is a debit balance in personal account, that mean the firm has to receive the balance amount from the party. Person owes the amount to the firm.

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