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lecture 8

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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
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