Plse elucidate

132 views 5 replies

MPR Sanjay Kumar

3145 Points Joined November 2020

as per Accounting rules we should have to journalise and ledger the nature of accounts, whatever the transactions happened we should have to find out the first of all nature of accounts....

typically trading account is have what type of account what type of nature of accounts

🌟 ( To )describes credit and( By) describes Debit ..

Trading account

To opening stock. By sales

To purchases. By closing st

To wages

here To and By how it's works plse explain me....

By student

Replies (5)

Prithviraj Das

129 Points Joined February 2018

Trading A/c is a nominal account. rules are Dr all expenses and credit all income. so on the debit side we write To and on the credit side we write By.

MPR Sanjay Kumar

3145 Points Joined November 2020

But sir,To is credit and by is debit generally

So on Debt side why to they mentioned ??

To means credit know?? So why it is not in credit side??

sabyasachi mukherjee

28026 Points Joined May 2017

Golden rule of accountancy.
Icai norms

MPR Sanjay Kumar

3145 Points Joined November 2020

Yes....Now I understand

By means Debit ( expenses,incomes& gainsreciver). that's why the sales and gross profit Are in mentioned " BY"

credit means ( Liability,capital ) that's why " TO".....

golden rules of accounting

prasad Nilugal

GST Practitioner & Accounts

15022 Points Joined March 2014

Basic of accounts

Golden rules of accounting.

1) Debit the receiver, Credit the giver - personal account

2) Debit what comes in, Credit what goes out - Real account

3) Debit the expenses and losses, Credit the Gains and Income - Nominal. Account.