A personal account records transactions related to individuals, firms, or organizations.
Credit balance in a personal account means the business owes money to that person or entity.
Therefore, it represents an amount payable (liability).
Examples:
Creditor’s account showing ₹10,000 credit → The business owes ₹10,000 to the creditor.
Other options:
Amount receivable: Would be a debit balance in a personal account.
Expense / Assets: Not indicated by a personal account’s credit balance.
