Question

Bank of India Account ___________.

• A. Real
• B. Personal
• C. Nominal
• D. None of the above

Answer 1

Answer: (B)

Personal

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types:

1. Natural persons: An account recording transactions with an individual is termed as natural persons' personal account. For e.g., Kamal's account, Mala's account. Both male and females are included in it.

2. Artificial or legal persons: An account recording financial transaction with an artificial person created by law or otherwise is termed as an artificial persons' personal account. For e.g., Firms' account, limited companies' account.

3. Representative personal account: An account indirectly representing a person or persons is known as representative personal account. When accounts are of similar nature and their number is large, it is better to group them under one head and open a representative personal account. For e.g., prepaid rent, outstanding wages, etc.

• Bank of India is a personal account as it is related to a banking firm which is an artificial persons. All those accounts which are related to a person, whether artificial or natural, are termed as personal account.