Debit the receiver credit the giver is rule for

Asked by admin @ in Accountancy viewed by 473 People

7. Debit the receiver, credit the giver is rule for

[A] personal account[B] tangible real account[C] nominalaccount[D] representative personal account​

Answered by admin @


ANSWER :

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★ [A] Personal Account

  • ❍ Debit the receiver, credit the giver is the rule for Personal Account.

  • ❍ Accounts heads pertaining to persons, firms, companies, organizations etc. are called Personal Accounts. It includes the accounts such as Ram's A/C, Gauhati Commerce College A/C etc.

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KNOW MORE :

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  • ❒ Rules of Debit and Credit under Traditional Approach or English Approach :-

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[1] For Personal Accounts :

  • ✎ Debit is the Receiver of the benefit.

  • ✎ Credit is the Giver of the benefit.

[2] For Real Accounts :

  • ✎ Debit what Comes in.

  • ✎ Credit what Goes out.

[3] For Nominal Accounts :

  • ✎ Debit all Expenses and Losses.

  • ✎ Credit all Incomes and Gains.

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  • ❒ Rules of Debit and Credit under American Approach or Modern Approach :-

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[1] For Assets Accounts :

  • ✎ When there is an increase in the Asset, it is 'Debited'.
  • ✎ When there is a decrease in the Asset, it is 'Credited'.

[2] For Liabilities Accounts :

  • ✎ When there is an increase in the Liabilities, it is 'Credited'.

  • ✎ When there is a decrease in the Liabilities, it is 'Debited'.

[3] For Capital Accounts :

  • ✎ When there is an increase in the Capital, it is 'Credited'.

  • ✎ When there is a decrease in the Capital, it is 'Debited'.

[4] For Revenue Accounts :

  • ✎ When there is an increase in the Revenue, it is 'Credited'.

  • ✎ When there is a decrease in the Revenue, it is 'Debited'.

[5] For Expenses Accounts :

  • ✎When there is an increase in the Expense, it is 'Debited'.

  • ✎ When there is a decrease in the Expense, it is 'Credited'

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