Question

Fill in the blanks with correct alternative and rewrite the statements :

________ accounts usually show a debit balance.
a) Personal
b) Real
c) Nominal
d) Income

Answer 1

Real accounts usually show a debit balance.

Explanation:
Real Accounts include all the assets of a business whose value can be measured in monetary terms. The rule for recording a transaction in a real account is “Debit what comes in, Credit what goes out”. All the assets show a debit balance and, thus, a real account also depicts the debit balance.