If we receive amount in bank then it is shown as credit
but
what comes in is debit and what goes out is credit.....why?
why there is such diffrence?
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bank entry
Replies (12)
bank A/c. Dr
debtors A/c. cr
as per golden rules
personal account - example debit the receiver and credit the giver.
debtors A/c. cr
as per golden rules
personal account - example debit the receiver and credit the giver.
could not understand
plz explain briefly
plz explain briefly
The Golden Rules of Accounting
Debit The Receiver, Credit The Giver. This principle is used in the case of personal accounts
in case you received amount in bank by Mr X
so entry is
Bank. A/c. Dr
Mr. X. A/c. cr
in case you paid money to Mr X
so entry is
Mr. X. A/c Dr
To Bank. A/c. Cr
Debit The Receiver, Credit The Giver. This principle is used in the case of personal accounts
in case you received amount in bank by Mr X
so entry is
Bank. A/c. Dr
Mr. X. A/c. cr
in case you paid money to Mr X
so entry is
Mr. X. A/c Dr
To Bank. A/c. Cr
can you connect this example with bank?
Bank is opposite : you received amount in your bank account ,so your account is credit
you paid amount to anyone from your bank ,so your account is debit
you paid amount to anyone from your bank ,so your account is debit
why this is so?
as per golden rules
Nominal account - example all expense are debit and all income is credit.
you need to read Golden rules
Nominal account - example all expense are debit and all income is credit.
you need to read Golden rules
i said if we receive amount in bank then we receive msg of bank show this as credit?
though bank is dr.
though bank is dr.
No,you receive amount ,so your bank is credit.
when you paid to anyone from your bank so your bank is debit
when you paid to anyone from your bank so your bank is debit
okk thanks brother
From the customers point of view, bank deposits are their assets but from the banks point of view the deposits they collected are their liability. Hope you understood.
Bank pass book is like your ledger account in Banks books of accounts.
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