What are the Golden rules of accounts? with an example?
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Answer / prashant.betgeri
1)Personal account : Debit the revicere & Credit the Giver.
2)Real Account : Debit what come in & credit the what goes
out
3)Nomial Account : Debit all expenses & losses & Credit all
income & gains.
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I renders interior Services, consider one project cost Rs.500000/- Scenario 1 - Material purchased on my Firm Name Material - 300000 - 0 On party behalf Labour - 200000 -150000 My expenses for Labour Contracts Profit - 50000 My Profit Scenario 2 - Material purchased by client Labour - 200000 -150000 My expenses for Labour Contracts Profit - 50000 My Profit In both Profit is same Rs. 50000/-. which is beneficial for me in terms of turnover or tax matters. and if I have to raise a bill to party as per both scenario, how it will affect bill and tax, where will I suffer loss?
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