Question

Personal accounts is of the various types namely, __________.

• A. Natural, Real, Representative
• B. Artificial, Legal, Nominal
• C. Natural, Artificial, Representative
• D. Any of the above

Answer 1

Answer: (C)

Natural, Artificial, Representative

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types:

1. Natural persons: An account recording transactions with an individual is termed as a natural persons' personal account. For e.g. Kamal's account, Mala's account. Both males and females are included in it.

2. Artificial or legal persons: An account recording transactions with an artificial person created by law or otherwise is termed as an artificial persons' personal account. For e.g. Firms' accounts, limited companies' accounts.

3. Representative personal accounts: An account indirectly representing a person or persons is known as representative personal account. When accounts are of similar nature and their number is large, it is better to group them under one head and open a representative personal account. For e.g. prepaid insurance, outstanding salaries, etc.