Question

Bank of Maharastra A/c is a Nominal A/c.

• A. True
• B. False

Answer 1

The correct option is B False

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.

Personal accounts are classified into three subcategories: Artificial, Natural, and Representative.

Artificial personal accounts are created artificially by law, such as corporate bodies and institutions. E.g. Pvt. Ltd companies, LLCs, LLPs, clubs, etc.

All the accounts of persons, companies or institutions are classified as personal accounts. The Bank of Maharashtra A/c is related to the banking firm, which is an artificial person, and all the accounts related to people, whether artificial or natural, are termed as personal accounts.