Basic Accounts Difficulties - Common Everyone Help

Drawing is an asset for the business therefore it wil come under the head [b]Real Accounts.[/b]
Understand in this way that business has to pay back the amt of capital (money invested  by the proprietor) to the proprietor on closure therefore it is a liability 4 business .Now think opposite that proprietor withdrew some amt for personal use therefore it wil be liability for bs.
[b]RULES[/b][u][/u][face=Geneva][/face]
[color=blue]NOMINAL:all expenses:Dr
                 all incomes:Cr
REAL
All assets:Dr
All liabilities:Cr

Personal
Dr the receiver
Cr the giver


Deferred revenue exp r a kind of capital asset.b/c u have to write a portion of it every year.


SEND ME THE REPLY IF U HAV ANY PROBLEM

Drawing is an asset for the business therefore it wil come under the head [b]Real Accounts.
Understand in this way that business has to pay back the amt of capital (money invested  by the proprietor) to the proprietor on closure therefore it is a liability 4 business .Now think opposite that proprietor withdrew some amt for personal use therefore it wil be liability for bs.
[b]RULES
NOMINAL:all expenses:Dr
                 all incomes:Cr
REAL
All assets:Dr
All liabilities:Cr

Personal
Dr the receiver
Cr the giver


Deferred revenue exp r a kind of capital asset.b/c u have to write a portion of it every year.


SEND ME THE REPLY IF U HAV ANY PROBLEM

drawing is a personal account as it reprasants capital account. while deffered expenditure is a real account as it a asset of company, which they have done to use later.
this is best upto my knowlegde and i will welcome any further discussion or debate..

siddharth
9820421007 :)

hi siddharth

how u can say that drawing is a personal A/c .capital is the amt invested by a (person) Proprietor/partner etc in his business. If u remember Accounting entity concept it says that an accounting entity is held to be "separate and distinct from its owners." In other words, according to this assumption, the business and its owners possess diff identity.we think from the pt of view of business & not the proprietor.

Therefore business has to return the same amt to the proprietor therefore it is the liability for the business.
Therefore capital is the liability towards owners .

further arguments r welcome.

i agree with siddarath comments..
any further arguements r welcomed... :) ;)