The debit balance of a personal account indicated debt owing by the person and credit balance indicates debts owing to the person concerned. For the business, the first one is account receivable or asset, while the second is accounts payable or liability. Every personal account showing debit balance (i.e. excess of debit side over credit side) will reveal the amount by which the debit side is more than the credit side. Debit balance is recoverable from the person whose account shows a debit balance. A debit balance to a personal account is an asset and therefore the more debit balance to a personal account is an asset and therefore the more debit balances to personal accounts, more the assets are in the form of outstanding recoverables. The debit balance of a personal account shows the amount receivable.

Explanation:

The credit balance of a personal account shows the amount payable. This means that the account holder owes money to the entity or person that maintains the account.

Personal accounts are maintained for individuals, firms, or other entities that are not incorporated. These accounts are used to record transactions related to personal finances, such as purchases, payments, and receipts.

Here are some key points to understand about the credit balance of a personal account:

- When a personal account has a credit balance, it means that the account holder owes money to the other party. For example, if you have a credit balance on your credit card account, it means that you have borrowed money from the credit card company and have not yet paid it back.

- The credit balance of a personal account is recorded on the liability side of the balance sheet. This is because it represents an obligation or debt that the account holder owes to another party.

- A credit balance is the opposite of a debit balance. A debit balance in a personal account would mean that the account holder has paid more than they owe and has a positive balance in their account.

- The credit balance of a personal account can be reduced by making a payment or settling the account. Once the account is settled, the balance will be zero or have a debit balance if the account holder has overpaid.

Overall, the credit balance of a personal account is an important indicator of the account holder's financial obligations and should be monitored regularly to avoid falling behind on payments or accruing additional debts.