Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, 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 financial transactions with an artificial person created by law or otherwise is termed as 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 accounts. 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 rent, outstanding wages etc.
Capital account is the account of a natural person, i.e. an account of person who is alive. Hence, it can be classified as a personal account.