Question

9. Classify the following accounts into Assets, Liabilities,
Capital, Expenses/ Losses and Revenues/ Gains under
American System.
a)Furniture A/C
b) Outstanding Rent A/c
c) Bad debts A/C
d) Interest Receivable A/
e) Rent received in advance A/C
f) Prepaid Salary A/C
g) Capital A/C
h) Bills Payable A/C
i) Investment A/C
1) Bank charges A/C​

Answer 1

Explanation:

Accounts which are not held in the name of person are known as impersonal accounts. Anyaccount other than personal account beingclassified as real account or nominal accounts is known as impersonal account.