**Explanation:**

Prepaid salary account is classified as a **personal** account in accounting. Here's why:

**Personal Accounts:**
Personal accounts are those accounts that are related to individuals, entities, or organizations having a separate identity from the business. These accounts represent the persons or entities with whom the business has financial transactions. The balances in personal accounts represent the amounts owed to or by the persons or entities.

**Prepaid Salary Account:**
A prepaid salary account is created when the business pays its employees in advance for their services. It is an asset account that represents the amount of salary paid in advance but not yet earned by the employees. The prepaid salary account is debited when the salary is paid in advance, and it will be credited as the salary is earned by the employees.

**Reason for Classification as Personal Account:**
The prepaid salary account is classified as a personal account because it represents the amount owed to the employees. It is a liability of the business towards its employees as they have not yet earned the salary paid in advance. The balance in the prepaid salary account will be gradually reduced as the employees render their services and earn their salary.

**Example:**
Let's say a company pays its employees $10,000 in advance for the month of January. The journal entry will be:

Prepaid Salary Account (Asset) $10,000
Cash/Bank Account $10,000

Here, the prepaid salary account is debited because it is an asset account representing the amount paid in advance. And the cash/bank account is credited because the cash is paid out.

As the employees render their services and earn their salary, a portion of the prepaid salary will be recognized as an expense, and the prepaid salary account will be reduced by that amount.

**Conclusion:**
In conclusion, the prepaid salary account is classified as a personal account because it represents the amount owed to the employees and is a liability of the business. It is a temporary account that will be gradually reduced as the employees earn their salary.