Answer Posted / sanmilan
Like Newtons Law, 'For Every action, there is an equal and
opposite reaction', For any Accounting Transaction you do
there are always 2 Effects. For E.g; When you buy something
you pay something, IF you don't pay right away, your
liability to pay the amount at future date arises. If you
sell something you get the compensation/price or a
commitment to get paid on a future Date. So Ledger Posting
is Posting of these 2 aspects, which we describe as 'Debit'
& 'Credit' to appropriate accounts.
In other words, segregating the aspects of Debit & Credit of
each Transactions to respective Ledger Heads based on the
Nature of Accounts(real,Nominal&Personal) according to the
Golden Rule of Accounts which are as below;
REAL ACCOUNTS DEBIT WHAT COMES IN
CREDIT WHAT GOES OUT
NOMINAL ACCOUNTS DEBIT ALL EXPENSES AND LOSSES
CREDIT ALL INCOMES AND REVENUES
PERSONAL ACCOUNTS DEBIT THE GIVER
CREDIT THE RECEIVER
Thanks
| Is This Answer Correct ? | 6 Yes | 2 No |
Post New Answer View All Answers
I WRITE GROUP-4 EXAMINATION.I STADIYING INTERMEDET HOW MANY PARSANTEGE OF GROUP-4 EXAMINETIN
The 'going concern concept' is the underlying basis for: 1.stating fixed assets at their historical cost 2.disclosing the market value of securities 3.disclosing the sales and other operating information in the income statement 4.none of the above
journal entry for goods withdrawn for personal use
sir, i want t know, i got a cheque frm sindhu (that amount i gave her as rent advance, she is returning nw) bt the cheque has cancled and bank take cheque return charges so plz give this journal entries.
Entries to revenues accounts such as service revenues are usually?
What is deferred account?
What a deferred asset is and give an example?
what are the basic elements to prepare a quarterly information system and how to calculate that items?
what is the difference between profit center area and business are.? please make me clear.
what is the relationship between bookkeeping and accounting?
what is miscellaneous expenditure??
what is the entry to be made for vat when any purchase is made in that bill vat amount is included ?
Define social responsibility accounting
As you know excellent communication skills are at the core of this position. Do you have experience with interpersonal communication in a professional setting?
a person have to buy 2kg items out of 4 differnt price tag item i.e potatoo rs. 10 kg, onion rs. 5 kg , radish rs. 1 kg, and chilli rs. 1 kg in rs 10 how can he do
