State whether the following statement is True or False with reasons: Drawings account is a nominal account. - Book Keeping and Accountancy

Question

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

Drawings account is a nominal account.

Options

True
False

MCQ

True or False

Solution

This statement is False.

Drawings mean amount withdrawn by the owner from business and the owner’s account is a personal account. Therefore, we can say that the drawings account is a personal account.

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Q 4. 5)Q 4. 4)Q 4. 6)

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. 5) | Page 40

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