What are Personal Accounts?
Personal accounts refer to those financial accounts that belong to individuals, organizations, or entities with whom financial transactions are carried out. The personal accounts track the individuals’ assets, liabilities, expenses, and revenue. Thus, individuals can manage their finances, monitor their financial health, and prepare their financial statements using these personal accounts. Typically, personal accounts can be related to natural persons such as Rajesh’s account, and Suresh’s account, to artificial persons such as partnership firms, corporate bodies, companies, and associations of persons.
Key Takeaways:
- Personal accounts are financial accounts of individuals, organizations, or entities with whom an entity has financial transactions.
- There are three types of personal accounts: natural, representative, and artificial.
- The golden rule of accounting for personal accounts says Debit the receiver and Credit the giver.
Table of Content
- Types of Personal Accounts
- Personal Accounts and Golden Rules of Accounting
- Example of Personal Accounts
- Conclusion
- Personal Accounts – FAQs