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Real Account
โข Represent the Assets and Properties Accounts:
โข Classified into
1. Tangible Accounts: Land, Building, Machinery, Cash, Furniture,
2 Intangible Accounts: Goodwill, Patents, Trademark
โข Generally, have a Debit balance only
โข Golden Rules of Accounting for Real Account
Debit: Whatโs comes in
-Credit: whatโs goes out
โข Example: Furniture Purchased for Cash Rs 5,000
Furniture Dr ( Coming in) 5,000
To Cash ( Going Out) 5,000
Personal Account:
โข It Represent the person or Business (Firms, Proprietorship Firm, Company etc)
โข 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
โข They can have Debit or Credit balance
โข Golden Rules of Accounting for Personal Account
-Debit the Receiver
-Credit the Giver
โข Example: Cash Given to Neha Rs3,000
โข Neha Account Dr (Receiver of Cash) 3,000
To Cash (Going Out) 3,000
Nominal accounts
โข Related to Income / Gain and Expense /Losses Account
โข All kind of Income and All kind of Expense are classified as Nominal Account
โข At the end of year, they are transferred to the Trading Account or Profit and Loss Account
โข Golden Rules of Accounting for Real Account
-Debit: All Expense and Losses
-Credit: All Income and Gain
โข Example: Salary Rs 12,000 Paid
Salary A/c Dr ( Expense ) 12,000
To Cash ( Going Out) 12,000
#GoldenrulesofAccounting
#rulesofdebitandcredit
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ะะตะณัะทะณั ะฑะตั Rules of Debit and Credit | Modern Method | #4 Journal Entries Accounting | Class 11
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