Debit & Credit

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Sandeep Pardeshi (Querist)
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15 February 2011 i always face the problem of DEBIT & CREDIT. give me example & concept of debit & credit so i wil never forget & mistake for debit & credit

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 February 2011 SUPPOSE,
YOU GOODS SOLD TO RAM AND COMPANY OF RS. 1,00,000/-
JOURNAL ENTRY WILL BE :-
RAM AND COMPANY DR.100000
TO CASH / BANK 100000
(BEING GOODS SOLD )

WHEN U RECEIVED THE AMOUNT :-
CASH / BANK ACCOUNT DR.100000
TO RAM AND COMPANY 100000

BEING RECEIPT IN RESPECT OF GOODS SOLD)

TO AVOID CONFUSION ABOUT DEBIT AND CREDIT READ LINK:

https://www.quickmba.com/accounting/fin/debits-credits/

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 February 2011 Always follow Golden Rule of Accountancy..

1. For Personal Accounts

Debit- the receiver & Credit- the giver

2. For Real Accounts

Debit- what comes in & Credit- what goes out

3. for nominal accounts

Debit- all expenses/losses & Credit- all incomes/ gains

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