Golden Rule of Accounting

Lets earn unlimited money together by completing tasks on Roz Dhan daily.

There are three types of accounting rule

1) Personal
2) Real
3) Nominal

Types of Account

1) Personal A/c : Debit the Receiver And Credit the Giver

For example i) Cash paid to Mr A

Mr. A A/c Dr.
To Cash A/c Cr.
(Cash paid to Mr. A)

ii) Cash received from Mr. C

Cash A/c Dr
To Mr. A/c
(Cash rec'd from Mr c)

Personal A/c including the Natural Personal Account, Artifical Personal Account,
Representative Personal Account

2) Real Account
What comes in Debit
Whit goes out Credit

For example Furniture Purchase in cash 10000
Furniture A/c Debit
To cash A/c Credit

Real Account means also Impersonal Account
That including Tangible Real Account (Land Building, Furniture, All Assets)
And also Intangible A/c (Goodwill, Trademarks, Patents Etc.)

3) Nominal Account
All Expenses and losses Debit
All Incomes and Gain Credit

For example, Cash received from the ram of Rs 10,000 Against commission
Cash A/c Debit (Real account Dr)
To commission A/c Credit (Nominal A/c Cr)

Nominal account mean Account showing expenses and showing incomes
Rent, Wages, Salary paid to employees

Lets earn unlimited money together by completing tasks on Roz Dhan daily.

Recommended: Tally Erp 9

Also read, GST COMPUTATION & ACCOUNTING, What is GST Credit?

Basic concept of accounting

Accounting: It is an art of recording, classifying and summarizing in a significant manner and in terms of money, transactions, and events which are of the financial character and interpreting the results thereof.

Business Transaction: A business transaction is “The movement of money and money‟s worth form one person to another”. Or exchange of values between two parties is also known as “Business Transaction”.

Purchase: A purchase means goods purchased by a businessman from suppliers.

Example A) Purchase Goods from Abc company ltd. in cash RS 30,000

Purchase A/c		Debit	30,000
	To Cash A/c	Credit		30,000
(Being Purchase goods from Abc Company ltd)
If that Goods business related that take in purchase A/c

Example B) Purchase Goods from Abc company ltd. on credit
RS30,000

Purchase A/c		Debit	30,000
	To Abc company Ltd A/c	Credit		30,000
(Being Purchase Goods on credit)

Lets earn unlimited money together by completing tasks on Roz Dhan daily.

Sales: Sales is goods sold by a businessman to his customers

Recommended: Tally Erp 9

Purchase Return or Outward Invoice: Purchase return means the return of the full or a part of goods purchased by the businessman to his suppliers.

Example Goods Return to Abc company ltd.