Real Accounts MCQs Quiz | Class 9
This quiz is for Class 9 students studying Elements of Book-Keeping & Accountancy (Code 254), based on Unit 3: Nature of Accounts & Rules for Debit and Credit. It covers essential topics like tangible and intangible assets and property accounts. Answer all 10 questions, submit your quiz, and review your score. You can also download your answer sheet as a PDF for future reference.
Understanding Real Accounts
In accountancy, accounts are broadly classified into three types: Personal, Real, and Nominal. Real Accounts are accounts related to assets or properties of the business. These are things that the business owns and which have a monetary value. The fundamental purpose of Real Accounts is to keep a record of all the assets and properties of a company.
Types of Real Accounts
Real Accounts are further divided into two main categories based on their physical existence:
1. Tangible Real Accounts
These are accounts of assets that have a physical existence and can be seen and touched. They represent the physical property owned by the business. When these assets are purchased, they are debited, and when they are sold, they are credited.
- Cash Account: Represents physical cash in hand.
- Machinery Account: Represents the machines owned by the business.
- Building Account: Pertains to the land and buildings owned.
- Furniture Account: Includes items like tables, chairs, and cupboards.
- Stock Account: Represents the value of goods available for sale.
2. Intangible Real Accounts
These are accounts of assets that do not have a physical existence but still possess monetary value and can be bought or sold. They represent non-physical rights and benefits for the business.
- Goodwill Account: Represents the good name, reputation, and customer connections of the business.
- Patents Account: Represents the exclusive right granted for an invention.
- Trademarks Account: Pertains to a registered brand name, symbol, or logo.
- Copyrights Account: Represents the exclusive legal right to reproduce and distribute a creative work.
The Golden Rule for Real Accounts
The rule for recording transactions in Real Accounts is simple and is one of the “Golden Rules of Accounting”:
Debit what comes into the business.
Credit what goes out of the business.
For example, when a company buys machinery for cash, the Machinery Account is debited (because machinery comes in) and the Cash Account is credited (because cash goes out).
Difference Between Tangible and Intangible Assets
| Basis | Tangible Real Accounts | Intangible Real Accounts |
|---|---|---|
| Physical Existence | They have a physical form and can be touched. | They do not have a physical form. |
| Depreciation | Subject to depreciation (wear and tear). | Subject to amortization (writing off value over time). |
| Examples | Land, Building, Cash, Machinery, Furniture. | Goodwill, Patents, Trademarks, Copyrights. |
Quick Revision Points
- Real Accounts are also known as Property Accounts.
- They relate to all assets of the business, both tangible and intangible.
- These accounts do not close at the end of the financial year; their balances are carried forward to the next year.
- The golden rule is “Debit what comes in, Credit what goes out”.
- An increase in an asset is recorded on the debit side, and a decrease is recorded on the credit side.
Practice Questions
- If a business purchases a computer for office use, which account should be debited?
- Is ‘Rent Paid’ a Real Account? Why or why not?
- A company sells old furniture. Which account will be credited?
- Classify the following into Tangible or Intangible Real Accounts: Computer Software, Delivery Van, Brand Name.
- What is the journal entry for purchasing goods for cash worth Rs. 5,000?
