Question

Bank loan account is a _________.

• A. Personal account
• B. Real account
• C. Nominal account
• D. Individual Account

Answer 1

The correct option is A Personal account

There are mainly three types of accounts: Real, Personal, and Nominal. Personal accounts are classified into three subcategories: Artificial, Natural, and Representative.

The accounts related to real persons and organizations are classified as personal accounts. Examples of personal accounts include John's account, Peter's account, Procter and Gamble's account, Vibrant Marketing Agency's and City Bank's account etc. The business keeps a separate account for each individual and organization for the purpose of ascertaining the balance due from or due to them. Hence, bank loan account is a personal account.