Personal Accounts MCQs Quiz | Class 9
This quiz is for Class IX students studying Elements of Book-Keeping & Accountancy (Code 254), focusing on Unit 3: Nature of Accounts & Rules for Debit and Credit. It covers key concepts of Personal Accounts, including natural persons, artificial persons, and representative persons. Answer all questions, submit to see your score, and download your answer sheet as a PDF.
Understanding Personal Accounts
In accountancy, accounts are broadly classified into Personal, Real, and Nominal accounts. Personal Accounts are related to individuals, firms, companies, or institutions. The core rule for these accounts is: “Debit the receiver, Credit the giver.” This unit focuses on understanding the three sub-types of Personal Accounts.
Types of Personal Accounts
Personal accounts are further divided into three categories:
1. Natural Personal Accounts
These accounts relate to human beings. Any account in the name of a person, like Ram, Sita, or the proprietor, falls into this category.
- Examples: Ram’s Account, Mohan’s Account, Proprietor’s Capital Account, Proprietor’s Drawings Account.
2. Artificial Personal Accounts
These accounts do not have a physical existence as human beings but are recognized as persons in the eyes of the law. They include accounts of firms, companies, institutions, banks, etc.
- Examples: ABC Ltd.’s Account, State Bank of India Account, Delhi University Account, a partnership firm’s account.
3. Representative Personal Accounts
These are accounts that represent a certain person or a group of persons. They are usually prefixed or suffixed with words like ‘Outstanding’, ‘Prepaid’, ‘Accrued’, or ‘Unearned’.
- Examples: Outstanding Salary Account (represents employees to whom salary is due), Prepaid Rent Account (represents the landlord to whom rent is paid in advance), Accrued Interest Account (represents interest earned but not yet received).
Golden Rule for Personal Accounts
The fundamental rule for recording transactions in Personal Accounts is:
Debit the Receiver, Credit the Giver.
Example: If you pay Rs. 5,000 to Ram, Ram is the receiver of cash. Therefore, Ram’s Account will be debited. The Cash Account (a Real Account) will be credited because cash is going out.
Quick Reference Table
| Account Name | Type | Reason |
|---|---|---|
| Anil’s Account | Natural Personal | Represents a human being. |
| Bank of Baroda Account | Artificial Personal | Represents a legal entity (a bank). |
| Outstanding Wages Account | Representative Personal | Represents employees whose wages are due. |
| Capital Account | Representative Personal | Represents the owner (proprietor). |
| Prepaid Insurance Account | Representative Personal | Represents the insurance company receiving payment in advance. |
Quick Revision Points
- Personal accounts are related to persons (natural, artificial, or representative).
- Natural persons are human beings (e.g., Suresh’s A/c).
- Artificial persons are legal entities (e.g., TATA Company’s A/c).
- Representative persons are accounts representing a group (e.g., Prepaid Rent A/c).
- The rule is: Debit the receiver, Credit the giver.
- Capital and Drawings accounts are considered personal accounts as they relate to the proprietor.
Practice Questions
- Classify ‘Drawings Account’.
- If a business receives cash from a debtor, which account should be debited and which should be credited?
- Is ‘Goodwill Account’ a Personal Account? Why or why not?
- Give two examples of accounts that are not Personal Accounts.
- Why is ‘Accrued Commission Account’ considered a Representative Personal Account?
