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Accounts and Rules

The document outlines the basic rules and types of accounts in accounting. It discusses 3 main types of accounts: personal accounts, real accounts, and nominal accounts. Personal accounts use debit for receivers and credit for givers. Real accounts use debit for what comes in and credit for what goes out. Nominal accounts use debit for expenses and losses, and credit for income and gains. It also provides examples of common accounts and whether transactions are recorded as debits or credits.

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Kishore Muruganantham
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781 views2 pages

Accounts and Rules

The document outlines the basic rules and types of accounts in accounting. It discusses 3 main types of accounts: personal accounts, real accounts, and nominal accounts. Personal accounts use debit for receivers and credit for givers. Real accounts use debit for what comes in and credit for what goes out. Nominal accounts use debit for expenses and losses, and credit for income and gains. It also provides examples of common accounts and whether transactions are recorded as debits or credits.

Uploaded by

Kishore Muruganantham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Rules for Accounts

Account Rule Types of Accounts


1 Personal a/c Debit the receiver Liabilities, Capital, Drawings
Credit the giver
2 Real a/c Debit what comes in Assets, Fixed and Current Asset, Purchase and Sales
Credit what goes out
3 Nominal a/c Debit all expenses and losses Expenses and losses, Income and gains
Credit all income and gains

Debit and Credit

S.no Account Debit or Credit Type of Account


Purchase Dr. Real a/c
Sales Cr. Real a/c
Purchase Return Cr. Real a/c
Sales Return Dr Real a/c
Carriage Inwards Dr Nominal a/c
Carriage Outwards Dr Nominal a/c
Expenses Dr Nominal a/c
Income Cr Nominal a/c
Salaries Dr Nominal a/c
Rent Dr Nominal a/c
Insurance Dr Nominal a/c
Electricity Bills Dr Nominal a/c
Discount Allowed Dr Nominal a/c
Discount Received Cr Nominal a/c
Bad debts Dr Nominal a/c
Recovery of Bad debts Cr Nominal a/c
Liabilities Cr Personal a/c
Capital Cr Personal a/c
Creditors Cr Personal a/c
Drawings Dr Personal a/c
Fixed Assets Dr Real a/c
Land and Building Dr Real a/c
Plant and Machinery Dr Real a/c
Furniture and fixtures Dr Real a/c
Current Assets Dr Real a/c
Debtors Dr Real a/c
Inventory/ Closing Stock Dr Real a/c
Cash in Hand Dr Real a/c
Cash at Bank Dr Real a/c
A common understanding of Accounts, but it is understood based on the application in
Accounting

What is Debit: A transfer of value to the accounts.

What is Credit: A transfer of Value from the accounts.


Debtors: Credit Sales

• Good Debtors: Who will pay all the amount


• Bad Debtors: Who will not pay the amount
• Doubtful Debts: Doubtful to pay some proportion of amount

Bad Debts: Debts that cannot be recovered

Recovery of Bad Debts: Debts that are recovered.

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