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Golden Rules Three Golden Rules 1) Real accounts ( Debit what comes in and credit what goes out)

2) Nominal Accounts (Debit all expenses and Credit all gains) ) !ersonal Accounts ( Debit the Recei"er and Credit the gi"er) !ersonal Accounts# Accounts dealing in the name o$ persons% compan& etc' Real Accounts# Accounts dealing in the name o$ which one exists' example Cash% (urniture% etc' Nominal Accounts# Account dealing with one we cannot see% touch ) example# *alar&% +lectricit& Charges% Rent etc' Real ACcnt examples o$ real account are salar& account% $urniture account% rent account personal accnt

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Real Account What coms in Debit What goes on Credit Expenses comes under Profit and loss Account Personal Account Debit the Receiver Credit the Giver Examples I received the loan Rs. !""!"""#$ %ominal Account Expenses and &oss are Debit Incomes and Gains are Credit

'r %o I thin( that )our parents didnt name )ou so far. Wh) )ou people are pla)ing and *asting time.+eel response and

plan )ourself. 'r 'urali do )ou (no** *hat )ou *rite.,our ans*er carries no meaning -he .uestion is give some examples and their placements ,ou observe the ans*ers Accounts are clasified into / Personal accounts!Real accounts and %ominal accounts.-he clasification is meaningful Personal accounts$$$ -o do business *e have to maintain contacts *ith persons and organisations formed b) persons Real accounts$$$ It deals *ith assets of the business %ominal accounts$$$$ It deals *ith expenses and incomes of business Examples Personal 0upplier and customer Real accounts$$$$ +urniture %ominal accounts$ 0ales! purchases %ominal account balances *ill be placed under Profit and &oss account Personal accounts and Real accounts *ill be placed under 1alance 0heet. In this 2uncture I *ill be pleased to advice )ou. Commerce is a good sub2ect. Dont neglect to improve it. I am a -ax Practitioner doing since / )ears! *ith interest I composed 3 sets of .uestion papers along *ith ans*er boo(s. If interested pl send e$mail to me
Real Account# All Asset Accounts -t -ncludes both Tangible assets li.e Cahs% car% (urniture and -ntagible assets /i.e Goodwill% !atents'

The Accounting rule $or Real Account is Debit 0hat Comes -n and Credit 0hat Goes 1ut !ersonal Accounts # All Accounts which can be attached to an indi"idual or 1rganisation' -t can be either an Asset or /iabilit& *a& an organisation bu&s good on Credit $rom 2r 3 $or 1444 5 so here the Account o$ 2r 3 is a !ersonal Account and will be a Creditor i'e /iabilit&' Accounting Rule $or !ersonal Account is Credit the 6ene$it Gi"er and Debit the 6ene$it Recei"er Nominal Accouns# All -ncome% +xpense% !ro$it% /osses accounts are Nominal Account' Debit All /osses and +xpenses and Credit all -ncomes and !ro$its' Read more# http#77wi.i'answers'com7870hat9are9the9"arious9examples9o$9nominal9real9and9perso nal9accounts,ix::1li;4<=/n

Personal Account. Real Account. %ominal Account. ex4 personal a#c4 rama a#c!(rishnaa#c! 2a)a a#c!prami a#c. Real a#c4 cash a#c. nominal a#c4salar) a#c! commission a#c! rent a#c. Rules4 personal a#c4 debit the receiver!credit the giver. real a#c4debit *hat comes in !credit *hat goes out. nominal a#c4debit all incomes and gains! credit all expences and losses. -here are / t)pes of Accounts. -he) are4$ 56 Personal Acccount4$ Debit the Receiver and Credit the Giver Eg4$%ame of the Person!%ame of the Compan)!etc. 76 Real Account4$ Debit *hat comes in and Credit *hat goes out Eg4$ Propert) a#c!Assest a#c

/6 %ominal Account4$ Debit Expenses 8 &oses and Credit Profit 8 Gains Eg4$ Rent!0alar)!etc..

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