Question

Qn.2 - Personal Accounts are related
to Individuals, Banks, Companies, etc.​

Answer 1

Answer:

Explanation:

We record business transactions in accounts. Thus, an account is an individual and a formal record of a person, firm, company, asset, liability, goods, incomes and expenses. We need to prepare one account for each type of asset, liability, income or expense.

Hence, we record all the transactions related to a particular item in its account. For example, all-cash transactions whether receipts or payments will be recorded in the Cash A/c. After this, we will calculate the balance of Cash A/c.