Accounts divided into two types 1.Personal A/c &
2.Impersonal, impersonal A/c again divided into two types
which is a)Nominal A/c & b)Real A/c.
Personal A/c: Debit is receiver and Credit is the giver.
Nominal A/c: All expenses and losses are Debit and all
incomes and gains are Credit.
Real A/c: What comes in and whats goes out.
But there is a only logic behind this that is Debit &
After closing the financial year i.e. 31st march.,
you have received a teliphone bill on dated 1st april
( And the bill was for the month of 1 mar to 31st march
i.e closing year's last month)what treatment you will do in
current financial year and closing financial year.