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

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

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Balbharati Book Keeping and Accountancy [English] 11 Standard Maharashtra State Board
Chapter 2 Meaning and Fundamentals of Double Entry Book-Keeping
EXERCISE | Q 4. 2) | Page 40

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