Classification of accounts - Personal Account

We have already discussed effect on the debit and credit based on the nature of accounts

click here to go through that once again.

Now, let us discuss about those accounts in detail...

1.Personal Account:- Personal accounts relate to personal, debtors, or creditors. Example ABC&co., Ram Account etc.

(or)

Personal accounts are accounts of person with whom a concern carries on business. Personal accounts may be:

a. Accounts of natural or physical persons
b. Accounts of artificial or legal persons
c. Representative personal accounts

a. Accounts of natural or physical persons :- i.e., accounts of human beings, e.g., Ram's Account, Sitaram's Account, Janakiram's Account, etc.

b. Accounts of artificial or legal persons :- i.e., accounts of partnership firms, companies, clubs, associations, banks, Government institutions, schools and colleges, etc., e.g., the Canara Trading Company's Account, the National Trading Company Ltd.'s Account, St, Aloysius College's Account, Income-Tax Department's Account, etc.

c. Representative personal accounts :- i.e., accrued expenses account, outstanding expenses account, prepaid expenses account, accrued incomes account, outstanding incomes account and incomes received in advance account, e.g., accrued debentures interest account, outstanding salaries account, prepaid insurance account, accrued fixed deposit interest account, outstanding bank interest account, rent received in advance account, etc.