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Answer Posted / rajinder dhawan
Personal Account is related to Double Entry Rules System
i.e Below:
Dr. Who is Receiver
Cr. Who is giver.
Example:
Dhawan purchase the goods from Rajinder of Rs.5000 in 10%
trader discount on credit Sale.
Purchase A/c Dr. 4500 ( What comes in Debit)
To Rajinder Cr. 4500 ( Who is giver)
| Is This Answer Correct ? | 6 Yes | 1 No |
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Why in a cash book receipts are debited while the same if received in our books recepits are credited. Why does cash book have a rule to debit receipts and credit payments. For example if am paying the cash that i owe the company or firm i debit in my books(cash) on the debit side and should credit in the cash book but i cant do that cash book take receipts on the debit side as per the general . please clarify many thanx in advance
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