What Is a Real Account?

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Solution

Real account is an account that retains the ending balance at the end of an accounting period and carries forward that balance as opening balance to the next accounting period.

Also read:

Accounting MCQs

Difference Between Bookkeeping and Accounting

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Difference Between Cash Basis and Accrual Basis of Accounting

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Answer in One sentence only

1. What is real account?
2. State the meaning of accounting equation.
3. What is rule of debit and credit for nominal account?
4. What do you mean by debit?
5. Give two examples of personal account.
6. What is an account?
7. What is nominal account?
8. Give two examples of real account
9. State whether drawings increases or decreases owner’s equity.
10. State the rule for personal account.

Q. Select the most appropriate answer the alternatives given below and rewrite the Sentences.

Under Single entry System only _______________.
a) Personal accounts and cash A/c are opened
b) Real accounts are opened
c) Nominal accounts are opened
d) Real and nominal accounts are opened,

What type of accounts are purchase and sales account ? Real or nominal ?

Q. What does the debit balance of real account indicate?

Q. What type of account is share application amount ?? (ie personal, real or nominal)

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