Question

Real A/c is credited when something comes in.

• A. True
• B. False

Answer 1

The correct option is B False

All assets of a firm, which are tangible or intangible, fall under the category "Real Accounts".

Tangible real accounts are related to things that can be touched and felt physically. Few examples of tangible real accounts are building, machinery, stock, land, etc.

Intangible real accounts are related to things that can't be touched and felt physically. Few examples of such real accounts are goodwill, patents, trademarks, etc.

The golden rule for Real accounts is: Debit what comes in; Credit what goes out.