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Question
Accounts recording transactions with a person or group of persons are known _____________.
Accounts recording transactions with a person or group of persons are known _____________.
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Solution
The correct option is B Personal accounts
There are mainly three types of accounts: Real, Personal and Nominal accounts. Personal accounts are classified into three subcategories: Artificial, Natural, and Representative. Personal accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc. The golden rule of personal accounts is :Debit the receiver; Credit the giver.
There are mainly three types of accounts: Real, Personal and Nominal accounts. Personal accounts are classified into three subcategories: Artificial, Natural, and Representative. Personal accounts are related to individuals, firms, companies, etc.
A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.
The golden rule of personal accounts is :Debit the receiver; Credit the giver.
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