i. A motor car account is a Real Account. ii. The rule of a Nominal Account is to Debit the receiver and Credit the giver.
State whether the following statements are True or False with reason:
i. A motor car account is a Real Account.
ii. The rule of a Nominal Account is to Debit the receiver and Credit the giver.
iii. A bank loan account is a Nominal account.
iv. Assets = Capital + Liabilities
v. A Trademark account is a personal account.
1 Answers
i. This statement is True.
All properties and assets fall under real accounts. Motor car is property so it is a real account.
ii. This statement is False.
The rule of the Nominal account is to debit all expenses and losses Credit all incomes and gains.
iii. This statement is False.
The bank account is a Personal account. It is a representative person.
iv. This statement is True.
Total assets are always equal to total liabilities. Total liabilities include capital also.
So Assets = Capital + Liabilities.
v. This statement is False.
Trademark is a real account. All tangible and intangible assets are properties and they fall under real account.