The correct answer is C. Personal account.
A personal account is an account that records transactions between a business and its customers, suppliers, employees, and other individuals. The basic principle of accounting “debit the receiver and credit the giver” is applicable to personal accounts because it helps to keep track of the money that is owed to and by the business.
A profit and loss account is a financial statement that shows the revenues and expenses of a business for a specific period of time. It is not a personal account because it does not record transactions between a business and its customers, suppliers, employees, or other individuals.
A real account is an account that records assets, liabilities, and equity. It is not a personal account because it does not record transactions between a business and its customers, suppliers, employees, or other individuals.
A cash account is an account that records the cash receipts and disbursements of a business. It is not a personal account because it does not record transactions between a business and its customers, suppliers, employees, or other individuals.