Question

Ram started his bussiness with cash re 500000 journilise the question​

Answer 1

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Date Particular L.F Debit Credit

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a. Cash a/c Dr. 500000

To capital a/c. 500000

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Some rules of Debit and credit:

• Personal account

Personal account is related to proper noun like name of person, name of bank and company.

Rules for personal account:

Debit: the receiver

Credit: The giver

Personal Account is used to record credit transactions.

• Real account

It is related to visible things except personal account terms.

For example: Goods, Cash, Furniture, Vehicles, Buildings.

Rules for Real Account:

Debit: What comes in

Credit: What goes out

• Nominal Account

Nominal account refers to those things which cannot be seen but can be expressed in terms of money.For example: Rent, Salary, Wages, Commission, Tax etc.

Rules for Nominal Account:

Debit: All expenses and losses

Credit: All income and profit

Note: Every debit should have equal credit.

Hope this helps..

Good luck on your assignment...