(1)"debit" means receiving aspect of a transactions
(2)"credit" means giving aspect of a transaction
thus for personal a/c-debit the receiver(he is receivingsomething thus it satisfies (1)
credit the giver(same as it satisfies (2))
for real a/c--debit what comes in (only if we receive something it comes in thus again it satisfies (1)
credit what goes out(vice versa satisfies (2)
for nominal a/c i couldn't able to match (1) and( 2)!!
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Nominal a/c??!!
Replies (1)
In nominal a/c, the rule is "DEBIT ALL EXPENSES & LOSSES AND CREDIT ALL INCOME & GAIN." so, for understanding purpose you can say that this a/c is opposite of others. . .
for eg. if you pay salary by cash, then entry will be salary a/c--DR. TO cash a/c. . . here salary is expense so you are debiting it.
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