Journalising

This query is : Resolved

siril (Querist)
Follow

26 September 2011 I want to know when we making journal entry which account to be credited and debited on which rule that is accounting equation or golden principle of accounting

further i have doubt how to analyse a ledger account

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
Follow

26 September 2011 In case of Asset
Debit the account when it is increasing
Credit the account when the asset is decreasing

In case of Liabilty
Crdit the account when particular liabilty is incresing and Debit when the laibilty is decresing

In case of Expense
Debit the expenses when the expense is to be booked or increased
Credit the account when the expenses decreases due to any reason

In Case of Income
Credit the income when it is to be booked or increases and
Debit the Income account when the Income decreases or to booking is to be reversed

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
Follow

26 September 2011 appears that not from Commerce stream, 3 accounts category: Real Account: Debit what comes in, Credit what goes out; Personal Account: Debit the Receiver,Credit the Giver; Nominal Account: Debit all expenses/losses, Credit all r incomes/gains.
Pl. be specific about analysing the Leger accounts-you need to understand and check the Trial Balance first.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now