Rules of Debit and Credit | Modern Method | #4 Journal Entries Accounting | Class 11

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  • Опубліковано 26 сер 2024
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    Real Account
    • Represent the Assets and Properties Accounts:
    • Classified into
    1. Tangible Accounts: Land, Building, Machinery, Cash, Furniture,
    2 Intangible Accounts: Goodwill, Patents, Trademark
    • Generally, have a Debit balance only
    • Golden Rules of Accounting for Real Account
    - Debit: What’s comes in
    -Credit: what’s goes out
    • Example: Furniture Purchased for Cash Rs 5,000
    Furniture Dr ( Coming in) 5,000
    To Cash ( Going Out) 5,000
    Personal Account:
    • It Represent the person or Business (Firms, Proprietorship Firm, Company etc)
    • Can be classified into three
    1. Natural Person: Vaibhav, Neha
    2. Artificial Person: Reliance Industries, Wipro Ltd , HDFC Bank
    3. Representative Company: Outstanding Expense , Outstanding Salary , Prepaid Rent
    • They can have Debit or Credit balance
    • Golden Rules of Accounting for Personal Account
    -Debit the Receiver
    -Credit the Giver
    • Example: Cash Given to Neha Rs3,000
    • Neha Account Dr (Receiver of Cash) 3,000
    To Cash (Going Out) 3,000
    Nominal accounts
    • Related to Income / Gain and Expense /Losses Account
    • All kind of Income and All kind of Expense are classified as Nominal Account
    • At the end of year, they are transferred to the Trading Account or Profit and Loss Account
    • Golden Rules of Accounting for Real Account
    -Debit: All Expense and Losses
    -Credit: All Income and Gain
    • Example: Salary Rs 12,000 Paid
    Salary A/c Dr ( Expense ) 12,000
    To Cash ( Going Out) 12,000
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