Multiple choice

Interest received in advance account is

  1. personal A/c

  2. real A/c

  3. nominal A/c

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Interest received in advance represents an obligation to provide service or return the amount. In traditional accountancy classification, this is a Personal Account because it represents the person who paid in advance. However, its nature is that of a liability.

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