lecture 8

RULES OF DOUBLE ENTRY SYSTEM

• PERSONAL A/C - DR. THE DEBTOR 

                                         CR. THE CREDITOR

• REAL A/C - DR. WHAT COMES IN 

                               CR. WHAT GOES OUT 

• NOMINAL A/C -  DR. ALL EXPENSES AND LOSSES 

                                         CR. ALL INCOMES AND GAINS 

PRACTICAL QUESTIONS

• CASH BORROWED FROM KAPIL RS. 10,000

CASH A/c 

TO KAPIL 

• MONEY LENT TO SACHIN RS. 2,000

SACHIN A/c

TO CASH A/c

• FURNITURE PURCHASED RS. 1,000

FURNITURE A/c

TO CASH A/c

• GOODS PURCHASED RS. 3,000

PURCHASES A/c

TO CASH A/c

• SALARY PAID TO VERU RS. 500

SALARY A/c

TO CASH A/c