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Which of the following statements is not true?
- a)All Personal & Real accounts ultimately show some balance
- b)The balances of Nominal accounts are transferred to Profit & Loss a/c
- c)Rent a/c is a personal account but outstanding rent account is a nominal account
- d)In ledger, accounts are opened separately
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Which of the following statements is not true?a)All Personal & Rea...
False Statement: Rent a/c is a personal account but outstanding rent account is a nominal account.
Explanation:
Personal Accounts:
Personal accounts are those accounts that relate to individuals, firms, companies, or organizations. These accounts include accounts of debtors, creditors, and proprietors. Personal accounts can be further classified into three categories, namely natural, artificial, and representative personal accounts.
Real Accounts:
Real accounts are accounts that relate to assets, liabilities, and capital. Real accounts are further classified into two categories, namely tangible and intangible real accounts.
Nominal Accounts:
Nominal accounts are accounts that relate to expenses, losses, incomes, and gains. Nominal accounts are also known as temporary accounts since they are closed at the end of each accounting period.
Explanation of Statements:
a) All Personal Real accounts ultimately show some balance:
This statement is true. Personal Real accounts always show a balance, and the balance can be either a debit or credit balance.
b) The balances of Nominal accounts are transferred to Profit Loss a/c:
This statement is true. At the end of each accounting period, the balances of all nominal accounts are transferred to the Profit and Loss account.
c) Rent a/c is a personal account but outstanding rent account is a nominal account:
This statement is false. Rent account is a nominal account, not a personal account. Outstanding rent account is a personal account.
d) In the ledger, accounts are opened separately:
This statement is true. In the ledger, each account is opened separately, and all transactions related to that account are recorded in that account.
Explanation:
Personal Accounts:
Personal accounts are those accounts that relate to individuals, firms, companies, or organizations. These accounts include accounts of debtors, creditors, and proprietors. Personal accounts can be further classified into three categories, namely natural, artificial, and representative personal accounts.
Real Accounts:
Real accounts are accounts that relate to assets, liabilities, and capital. Real accounts are further classified into two categories, namely tangible and intangible real accounts.
Nominal Accounts:
Nominal accounts are accounts that relate to expenses, losses, incomes, and gains. Nominal accounts are also known as temporary accounts since they are closed at the end of each accounting period.
Explanation of Statements:
a) All Personal Real accounts ultimately show some balance:
This statement is true. Personal Real accounts always show a balance, and the balance can be either a debit or credit balance.
b) The balances of Nominal accounts are transferred to Profit Loss a/c:
This statement is true. At the end of each accounting period, the balances of all nominal accounts are transferred to the Profit and Loss account.
c) Rent a/c is a personal account but outstanding rent account is a nominal account:
This statement is false. Rent account is a nominal account, not a personal account. Outstanding rent account is a personal account.
d) In the ledger, accounts are opened separately:
This statement is true. In the ledger, each account is opened separately, and all transactions related to that account are recorded in that account.
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Community Answer
Which of the following statements is not true?a)All Personal & Rea...
Outstanding rent is a representative personal account
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Which of the following statements is not true?a)All Personal & Real accounts ultimately show some balanceb)The balances of Nominal accounts are transferred to Profit & Loss a/cc)Rent a/c is a personal account but outstanding rent account is a nominal accountd)In ledger, accounts are opened separatelyCorrect answer is option 'C'. Can you explain this answer?
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Which of the following statements is not true?a)All Personal & Real accounts ultimately show some balanceb)The balances of Nominal accounts are transferred to Profit & Loss a/cc)Rent a/c is a personal account but outstanding rent account is a nominal accountd)In ledger, accounts are opened separatelyCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is not true?a)All Personal & Real accounts ultimately show some balanceb)The balances of Nominal accounts are transferred to Profit & Loss a/cc)Rent a/c is a personal account but outstanding rent account is a nominal accountd)In ledger, accounts are opened separatelyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is not true?a)All Personal & Real accounts ultimately show some balanceb)The balances of Nominal accounts are transferred to Profit & Loss a/cc)Rent a/c is a personal account but outstanding rent account is a nominal accountd)In ledger, accounts are opened separatelyCorrect answer is option 'C'. Can you explain this answer?.
Which of the following statements is not true?a)All Personal & Real accounts ultimately show some balanceb)The balances of Nominal accounts are transferred to Profit & Loss a/cc)Rent a/c is a personal account but outstanding rent account is a nominal accountd)In ledger, accounts are opened separatelyCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is not true?a)All Personal & Real accounts ultimately show some balanceb)The balances of Nominal accounts are transferred to Profit & Loss a/cc)Rent a/c is a personal account but outstanding rent account is a nominal accountd)In ledger, accounts are opened separatelyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is not true?a)All Personal & Real accounts ultimately show some balanceb)The balances of Nominal accounts are transferred to Profit & Loss a/cc)Rent a/c is a personal account but outstanding rent account is a nominal accountd)In ledger, accounts are opened separatelyCorrect answer is option 'C'. Can you explain this answer?.
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