Question

Share Application A/c is

• A. Personal A/c
• B. Real A/c
• C. Nominal A/c
• D. None of these

Hint:

It stands for the group of applicants, so it is a representative personal account.

Answer 1

The Correct Option is A

Step 1: Recall the three-fold classification of accounts:
Accounts are Personal (representing persons or groups), Real (representing assets), or Nominal (representing incomes/expenses).

Step 2: Identify what Share Application A/c represents:
It represents the collective claim of all applicants on the company for the money they paid until shares are allotted to them — it stands in for a group of persons (the applicants), which is the definition of a Personal Account (specifically, a representative personal account).

Final Answer:
Share Application A/c is a Personal Account.