Doubt regards about debit and credit

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This discussion clarifies the fundamental golden rules of accounting for personal, real, and nominal accounts. It explains how debits and credits are applied based on the nature of the account, using examples like payments to creditors and the impact of net profit on capital. The concept of opening stock as the previous year's closing stock is also addressed.

MPR sanjay Kumar

MPR sanjay Kumar (Querist)

13 January 2021 Dear honourable persons i have doubts regarding about the debit and credit,plse guide me

golden rules of accounting
1.personel account ( persons,company or firm and individuals)-----debit the receiver and credit the giver.
2.real account(assets )----debit what comes in and credit what goes out
3.nominal account (losses and profits)----debit all expenses and lossess and credit all incomes and gains.
iam i correct

* BUT THE DEBIT AND CREDIT ARE THE DEPENDS ABOUT THE NATURE OF ACCOUNTS.

one general doubt ,if i paid a amount to my creditors means the amount will which side it will show debit side or credit side in sundry creditors ledger account.. then if i want to payable means which side it will show.

could you plse guide me ,i have a detailed explanation of this thing with examples please

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 January 2021 Yes you are right.
If you paid your creditors the payable balance will be in credit side when you pay you have to debit the ledger. When fully paid it will show nil balance.
Payables will show credit side (creditors) receivables will show debit side (debtors).

MPR sanjay Kumar

MPR sanjay Kumar (Querist)

14 January 2021 Thank you Soo much sir my honourable CA seetharaman sir....

MPR sanjay Kumar

MPR sanjay Kumar (Querist)

14 January 2021 My honourable sir, why the net profit is added to capital account...could you plse tell with examples...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 January 2021 You are welcome. You can clear any of your doubts at any time.
Suppose a person invest Rs 100 in a business and earns Rs 10 profit after tax now his investment will be Rs 100 plus Rs 10 profit earned. The profit earned is his earning so it's added to his capital.

MPR sanjay Kumar

MPR sanjay Kumar (Querist)

14 January 2021 Sir,opening stock generally what is mean by opening stock.my this year closing stock will be a opening stock as next year opening stock....but actually what opening stock includes sir ,could you plse give me a examples...???

Sir then stock or shares both of the are same meaning?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 January 2021 Yes, this year closing stock is next year opening stock. The stock is merchandise traded in the business.

MPR sanjay Kumar

MPR sanjay Kumar (Querist)

14 January 2021 Could you plse tell me about the accounting standard 12 with case studies..

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