Multiple choice general knowledge

Debit what comes in credit what goes out. what account is this?

  1. Personal

  2. Real

  3. Nominal

  4. Cash Account

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The rule 'Debit what comes in, Credit what goes out' applies to Real Accounts (assets). Real accounts include tangible assets like machinery, furniture, and cash. Personal accounts follow 'Debit the receiver, Credit the giver', while Nominal accounts follow 'Debit all expenses and losses, Credit all incomes and gains'.