Question

All personal accounts show ________ balance.

• A. debit
• B. credit
• C. both
• D. none of the above

Answer 1

Answer: (C)

both

Personal Accounts refer to the account of any person which includes artificial person also. Like account of Mr. Shyam, account of ABC & Associates, account of XYZ Pvt Ltd.

All such personal account are having various business transactions of debit and credit. Hence, all personal account can either show debit or credit balance depend on the transactions. These are also known as sundry debtors and sundry creditors.