Question

Errors in __________ account does not affect profit and loss account.

• A. personal
• B. real
• C. both A & B
• D. nominal

Answer 1

Answer: (C)

both A & B

Personal accounts are the accounts of individual persons, which are classified as debtors and creditors, which are shown in balance sheet. Hence any error in personal account will bot effect the profit & loss account.

Real account are the account of assets or things which are also part of balance sheet hence any error in such account will not effect profit & loss account.