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    Accounts and Rules

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    Kishore Muruganantham
    The document outlines the basic rules and types of accounts in accounting. It discusses 3 main types of accounts: personal accounts, real accounts, and nominal accounts. Personal accounts use debit for receivers and credit for givers. Real accounts use debit for what comes in and credit for what goes out. Nominal accounts use debit for expenses and losses, and credit for income and gains. It also provides examples of common accounts and whether transactions are recorded as debits or credits.

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    Accounts and Rules

    Uploaded by

    Kishore Muruganantham
    440 views2 pages
    The document outlines the basic rules and types of accounts in accounting. It discusses 3 main types of accounts: personal accounts, real accounts, and nominal accounts. Personal accounts use debit for receivers and credit for givers. Real accounts use debit for what comes in and credit for what goes out. Nominal accounts use debit for expenses and losses, and credit for income and gains. It also provides examples of common accounts and whether transactions are recorded as debits or credits.

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    The document outlines the basic rules and types of accounts in accounting. It discusses 3 main types of accounts: personal accounts, real accounts, and nominal accounts. Personal accounts use debit for receivers and credit for givers. Real accounts use debit for what comes in and credit for what goes out. Nominal accounts use debit for expenses and losses, and credit for income and gains. It also provides examples of common accounts and whether transactions are recorded as debits or credits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    440 views2 pages

    Accounts and Rules

    Uploaded by

    Kishore Muruganantham
    The document outlines the basic rules and types of accounts in accounting. It discusses 3 main types of accounts: personal accounts, real accounts, and nominal accounts. Personal accounts use debit for receivers and credit for givers. Real accounts use debit for what comes in and credit for what goes out. Nominal accounts use debit for expenses and losses, and credit for income and gains. It also provides examples of common accounts and whether transactions are recorded as debits or credits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Rules for Accounts

    Account Rule Types of Accounts


    1 Personal a/c Debit the receiver Liabilities, Capital, Drawings
    Credit the giver
    2 Real a/c Debit what comes in Assets, Fixed and Current Asset, Purchase and Sales
    Credit what goes out
    3 Nominal a/c Debit all expenses and losses Expenses and losses, Income and gains
    Credit all income and gains

    Debit and Credit

    S.no Account Debit or Credit Type of Account


    Purchase Dr. Real a/c
    Sales Cr. Real a/c
    Purchase Return Cr. Real a/c
    Sales Return Dr Real a/c
    Carriage Inwards Dr Nominal a/c
    Carriage Outwards Dr Nominal a/c
    Expenses Dr Nominal a/c
    Income Cr Nominal a/c
    Salaries Dr Nominal a/c
    Rent Dr Nominal a/c
    Insurance Dr Nominal a/c
    Electricity Bills Dr Nominal a/c
    Discount Allowed Dr Nominal a/c
    Discount Received Cr Nominal a/c
    Bad debts Dr Nominal a/c
    Recovery of Bad debts Cr Nominal a/c
    Liabilities Cr Personal a/c
    Capital Cr Personal a/c
    Creditors Cr Personal a/c
    Drawings Dr Personal a/c
    Fixed Assets Dr Real a/c
    Land and Building Dr Real a/c
    Plant and Machinery Dr Real a/c
    Furniture and fixtures Dr Real a/c
    Current Assets Dr Real a/c
    Debtors Dr Real a/c
    Inventory/ Closing Stock Dr Real a/c
    Cash in Hand Dr Real a/c
    Cash at Bank Dr Real a/c
    A common understanding of Accounts, but it is understood based on the application in
    Accounting

    What is Debit: A transfer of value to the accounts.

    What is Credit: A transfer of Value from the accounts.


    Debtors: Credit Sales

    • Good Debtors: Who will pay all the amount


    • Bad Debtors: Who will not pay the amount
    • Doubtful Debts: Doubtful to pay some proportion of amount

    Bad Debts: Debts that cannot be recovered

    Recovery of Bad Debts: Debts that are recovered.

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