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What are the different types of Personal accounts?
The different types of personal accounts are as follow-
- Natural Personal account – Individuals or natural persons
- Artificial – Related to some artificial people as different companies or organizations.
- Representative – Some particular representatives come under this group as creditors, debtors, prepaid insurance etc.
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What are the terms you should know along with Personal account?
You must know about the following terms –
- Debit
- Credit
- Accounting heads
- Gain a/c
- Loss a/c
- Liabilities a/c
- Nominal a/c
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Why rules are important?
All the head of accounts must have some rules and these rules are based on credit and debit points of view. One pair of rules means the Principle based on the both side of rule as debit as well as credit to maintain everything in a proper way.
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