State whether the following statement is True or False with reasons: Capital account is a real account.

Question

State whether the following statement is True or False with reasons:

Capital account is a real account.

Options

True
False

MCQ

True or False

Solution

This statement is False.

The amount invested by the owner in the form of goods, cash, or assets is known as capital. As the owner is involved in a transaction, the capital account is a personal account.

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Concept of Account

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Q 4. 2)Q 4. 1)Q 4. 3)

Chapter 2: Meaning and Fundamentals of Double Entry Book-Keeping - EXERCISE [Page 40]

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Balbharati Book Keeping and Accountancy [English] Standard 11 Maharashtra State Board

Chapter 2 Meaning and Fundamentals of Double Entry Book-Keeping
EXERCISE | Q 4. 2) | Page 40

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