Question

Personal A/c. is credited when person gives something to the business.

• A. True
• B. False

Answer 1

The correct option is A True

Personal account relates to persons with whom a business keeps dealing. A person is called to be a natural person or a legal person. If a person receives anything from the business, he is called receiver and his account is to be debited in the books of the business. If person gives anything to business, he is called a giver and his account is to be credited in the books of the business.

The golden rule for Personal account is: Debit the Receiver; Credit the Giver.