Drawing account is real account.

True

No worries! We‘ve got your back. Try BYJU‘S free classes today!

False

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B False
Drawings account is a personal account.
Personal accounts are classified as :-
a) Natural person,
b) Artificial person
c) Representative personal accounts.
A representative personal account represents a person/persons.
Drawings account is a representative personal account.
Some examples of representative personal accounts are capital, outstanding wages, prepaid salaries.

Suggest Corrections

Similar questions

State whether the following statements are True or False.

1) Prepaid insurance is nominal account.
2) Personal transactions of proprietor are recorded in the books of account of business.
3) Every debit has equal and corresponding credit.
4) Loan account is personal account.
5) Drawing account is a real account.
6) Commission received is a nominal account.
7) Outstanding wages is a nominal account.
8) Bank of India is an example of real account.
9) An order placed for the goods, entry is passed/recorded in the book of account.
10 Every transaction has only on effect

Q. Ram's account is a Real account.

Ananya withdrew Rs. 2,000 per month for personal use, recording each transaction as a debit to her drawing account and a credit to her cash account. The journal entry closing the drawing account requires a credit to _______ account & debit to _______ account.

Q. Drawings Account is ___________.

Q. When we adjust interest on drawing with the capital account balance, then account will be debited, and account will be credited.

Join BYJU'S Learning Program