26 September 2011
I want to know when we making journal entry which account to be credited and debited on which rule that is accounting equation or golden principle of accounting
further i have doubt how to analyse a ledger account
26 September 2011
In case of Asset Debit the account when it is increasing Credit the account when the asset is decreasing
In case of Liabilty Crdit the account when particular liabilty is incresing and Debit when the laibilty is decresing
In case of Expense Debit the expenses when the expense is to be booked or increased Credit the account when the expenses decreases due to any reason
In Case of Income Credit the income when it is to be booked or increases and Debit the Income account when the Income decreases or to booking is to be reversed
26 September 2011
appears that not from Commerce stream, 3 accounts category: Real Account: Debit what comes in, Credit what goes out; Personal Account: Debit the Receiver,Credit the Giver; Nominal Account: Debit all expenses/losses, Credit all r incomes/gains. Pl. be specific about analysing the Leger accounts-you need to understand and check the Trial Balance first.
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