Doubt regards about debit and credit
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
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).
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.
Sir then stock or shares both of the are same meaning?