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personal account

Answer» These accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include\xa0debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.Natural personal accounts: This\xa0type\xa0of personal accounts is the simplest to understand out of all and includes all of God’s creations who have the ability to deal, who,\xa0in most cases, are people.\xa0E.g.\xa0Kumar’s A/C, Adam’s A/C, etc.Artificial\xa0personal accounts:\xa0Personal accounts which are created artificially bylaw, such\xa0as corporate bodies and\xa0institutions, are called Artificial personal accounts.E.g.\xa0Pvt Ltd companies, LLCs, LLPs, clubs, schools,\xa0etc.Representative personal accounts:\xa0Accounts which represent a certain person or a group directly or indirectly.\xa0E.g.\xa0Let’s\xa0say that wages are paid in advance to\xa0anemployee – a\xa0wage\xa0prepaid 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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