Examples each for golden rules of accounting

Answer Posted / venkatayya

A. Personal a/c: Debit the receiver
Credit the giver

B. Real a/c: Debit what comes in
Credit what goes out
C. Nominal a/c: Debit all expenses and losses
Credit all gains and incomes

Is This Answer Correct ?    15 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

what are the different types of expenditures considered for the purpose of accounting?

638


what is special purpose ledger in SAP.. is it required to configure in ECC 6.0 since New GL concept is active?

1608


how do made in finalization

1549


can we adjust margin money paid to bank to open a Bank Guarantee in stock statement while calculating Drawing Power

1308


what are doucement required under registration of properity firm. give the answer breif

1547






Any body would tell me how to takeover withholding tax at the time of go live in sap fico

996


Unrealised profit will be debited to ?

1466


How does Cheques work while processing it in SAP? What are the effects and the methods.

1753


Apportionment of expenses

1839


credit card all entry pass in tally

1037


Can anybody tell me diference between provisions of Profit and Loss account prepared as per company act & Income Tax Act?

1452


DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in haryana. The company's sales in the year ending on 31st march 2007 were Rs.1000 million(Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of the company is 14 percent.The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30 million per annum. The plant can be sold for Rs.200 million: (a) The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annum installment of interest and repayment of principal. (b) A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: (1) Should the company expand its capacity? show the computation of NPV. (2) What is the annual installment of bank loan? (3) calculate the quarterly installment of the financial institution loan. (4) should the company borrow from the bank of from the financial institution?

2576


Key difference between indian accounting standards and international accounting standards is.

638


What are accounting entities?

619


Tell me what does the investment of personal assets by the owner will do?

658