Personal Accounts are those accounts that relate to persons such as individuals (like Ram, Mohan, Sohan, etc), firms (like XYZ & Co., Ajit Ram, and Brothers, etc), companies (like XYZ Ltd, ABC Ltd, etc), debtors (name of debtors), creditors (name of creditors), capital account of proprietor or drawings account of the proprietor, etc.
Categories of Personal Accounts
There are three categories of Personal Accounts.
- Natural Person Account: It refers to accounts of living human beings such as Rohit’s Account, Lata’s Account, etc.
- Artificial Person Account: It refers to accounts of companies or firms that act as a person in the business transactions. For example, ABC Ltd Account, XYZ Ltd Account.
- Representative Personal Account: It refers to an account that acts as a representative of a certain person. For example, Salary Outstanding Account represents salary payable to employees and Rent Outstanding Account represents rent payable to the landlord.
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Accounting Information
accounting information is often defined as data and facts produced or revealed by the financial statements of a business. This information is usually available within the sort of financial statements, financial reports, etc.