Personal Accounts:
Personal Accounts are accounts of persons with whom a concern carries on business. Personal accounts may be:
(a) Accounts of natural or physical persons, i.e., accounts of human beings, e.g., Ram's Account, Sitaram's Account, Kamakura's Account, Kothandarsm's Account, Balaam's Account, Anantharsm's Account, Sita's Account, Janaki's Account, Devi's Account, Sitadevi'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., the Canara Trading Company's Account, the National Trading Company Ltd's Account, Aloysius College's Account, National School's Account, Bharat Bank's Account, Income-Tax Department's Account, Karnataka Electricity Board'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 debenture interest account, outstanding salaries account, prepaid insurance account, accrued fixed deposit interest account, outstanding bank interest account, rent received in advance account, etc. These accounts are called representative personal accounts, as they represent certain persons behind them. For instance, outstanding wages account represents all those workers to whom wages are to be paid. Prepaid rent accounts represents the account of the landlord to whom rent has been paid in advance.
Personal Accounts are accounts of persons with whom a concern carries on business. Personal accounts may be:
(a) Accounts of natural or physical persons, i.e., accounts of human beings, e.g., Ram's Account, Sitaram's Account, Kamakura's Account, Kothandarsm's Account, Balaam's Account, Anantharsm's Account, Sita's Account, Janaki's Account, Devi's Account, Sitadevi'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., the Canara Trading Company's Account, the National Trading Company Ltd's Account, Aloysius College's Account, National School's Account, Bharat Bank's Account, Income-Tax Department's Account, Karnataka Electricity Board'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 debenture interest account, outstanding salaries account, prepaid insurance account, accrued fixed deposit interest account, outstanding bank interest account, rent received in advance account, etc. These accounts are called representative personal accounts, as they represent certain persons behind them. For instance, outstanding wages account represents all those workers to whom wages are to be paid. Prepaid rent accounts represents the account of the landlord to whom rent has been paid in advance.
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