Multiple choice

What type of account is a drawings account?

  1. Personal account

  2. Real account

  3. Nominal account

  4. Sales account
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A Correct answer
Explanation

Drawings account is a personal account because it represents the proprietor (a person) and records all withdrawals made by the owner from the business for personal use. It follows the rule for personal accounts: debit the receiver, credit the giver. It is neither a real account (which tracks assets) nor a nominal account (which tracks incomes and expenses).

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