What is Personal Acccount in Accountancy?

What do you understand by Personal A/c? What is the definition of Personal A/c?

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  • ANS- These accounts types are related to person.These person may be natural persons like Raj's account, Rajesh's Account,Ramesh account etc.
    These person can also be artificial person like partnership dfirms, companies, bodies corprates an association of person etc. For ex- Rajesh and suresh Trading Co,Charitable Trust,XYZ Bank Ltd etc.
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  •  accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.
    Natural personal accounts:  This type of personal accounts is the simplest to understand out of all and includes all of God’s creations who have the ability to deal, who, in most cases, are people. E.g. Kumar’s A/C, Adam’s A/C, etc. Artificial personal accounts: Personal accounts which are created artificially by law, such as corporate bodies and institutions, are called Artificial personal accounts. E.g. Pvt Ltd companies, LLCs, LLPs, clubs, schools, etc. Representative personal accounts: Accounts which represent a certain person or a group directly or indirectly. E.g. Let’s say that wages are paid in advance to an employee – a wage prepaid account will be opened in the books of accounts. This wages prepaid account is a representative personal account indirectly linked to the person.
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