Plse elucidate

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3145 Points Posted on 31 July 2022
as per Accounting rules we should have to journalise and ledger the nature of accounts, whatever the transactions happened we should have to find out the first of all nature of accounts....


typically trading account is have what type of account what type of nature of accounts


🌟 ( To )describes credit and( By) describes Debit ..


Trading account

To opening stock. By sales

To purchases. By closing st

To wages


here To and By how it's works plse explain me....

By student
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On 31 July 2022 at 09:53 Report
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Quick Summary
This discussion clarifies the use of 'To' and 'By' in a Trading Account according to accounting rules. It explains that a Trading Account is a nominal account, where debits represent expenses and credits represent income. The confusion arises from the general rule where 'To' signifies credit and 'By' signifies debit, but in the context of account entries, 'To' is used on the debit side for expenses (like opening stock, purchases, wages) and 'By' is used on the credit side for income (like sales and closing stock).

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129 Points Posted on 31 July 2022
Trading A/c is a nominal account. rules are Dr all expenses and credit all income. so on the debit side we write To and on the credit side we write By.
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On 31 July 2022 at 10:46
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3145 Points Posted on 31 July 2022

But sir,To is credit and by is debit generally

 

So on Debt side why to they mentioned ??

 

To means credit know?? So why it is not in credit side??

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On 31 July 2022 at 10:50
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Profession
28269 Points Posted on 31 July 2022
Golden rule of accountancy.
Icai norms
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On 31 July 2022 at 11:00
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3145 Points Posted on 31 July 2022
Yes....Now I understand


By means Debit ( expenses,incomes& gainsreciver). that's why the sales and gross profit Are in mentioned " BY"



credit means ( Liability,capital ) that's why " TO".....


golden rules of accounting
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On 31 July 2022 at 11:07
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GST Practitioner & Accounts
15150 Points Posted on 31 July 2022

Basic of accounts

Golden rules of accounting.

1) Debit the receiver, Credit the giver - personal  account

2) Debit what comes in, Credit what goes out - Real account

3) Debit the expenses and losses, Credit the Gains and Income - Nominal. Account.

    

 

 

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On 31 July 2022 at 11:20

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