Livestock Economics, Marketing and Business Management

PERSONAL ACCOUNTS

Personal Accounts

• It includes the accounts of persons with whom the business deals. There are three categories.

Natural Personal Accounts

• The term ‘Natural Persons’ means persons who are creation of GOD. For e.g. Raja’s account, Kumar’s account.

Artificial Personal Accounts

• These accounts include account of corporate bodies or institutions which are recognised as persons in business dealings. E.g. The account of a club, the account of Government, the account of an insurance company etc.

Representative Personal Accounts

• These are accounts which represent a certain person or group of persons.
• E.g: For salaries due to employees (not paid), an outstanding salaries account will be opened. This outstanding salaries account represents the accounts of the persons to whom the salaries have to be paid.
• The rule is
  • Debit the receiver
  • Credit the giver
• E.g: Ravi is giving cash to Rama.
• Then the account of Ravi will have to be credited and Rama’s account will have to be debited.