Question

Outstanding salary is

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

Hint:

Personal Accounts include debtors and creditors; always check the nature of the transaction.

Answer 1

The Correct Option is C

Step 1:
Outstanding salary represents an amount owed to employees, which is a liability.
Step 2:
In accounting, liabilities are classified under Personal Accounts, as they relate to persons or entities to whom money is owed.
Step 3:
Therefore, the correct classification is (C) Personal Account.