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Principles of accounting with atleast one example for each.
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Answer Posted / vasudeva rao
Principles of accounting
1. Personal Ac: It deal with individual Person or Company
Debit the Receiver
Credit the Giver
Eg : Raju purchase goods from Ravi on Credit
Raju Ac Dr - Receiver
To Ravi Ac - Giver
2. Real Ac - It deal with Asset.
Debit what comes in
Credit what goes out
Eg: Purchase Machine for cash
Machine Ac Dr - Comes in
To Cash Ac - Goes out
3. Nominal Ac - It deasl with expens & income
Debit all expense & loss
Credit all income & gain
Eg: Commission received from Raju- cash
Cash Ac Dr - Real Ac
Commission Received ac- Income
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