Requirement:

Golden Rules of accounts:

1. Personal account: Any name of person, college, bank, Institute, company, Enterprises, etc.

2. Real account also called as Asset account or Properties account:

Any Name of Assets: Furniture, Machinery, Motor Van, Land and Buildings, etc...

3. Nominal account: Rent a/c, Salary a/c, Electricity a/c, Frieght charges, Interest recd a/c, Commission received account. etc....

1. Personal account: Debit the Receiver and Credit the Giver

2. Real account: Debit what comes in Credit What goes out

3. Nominal account: Debit all expenses and losses and Credit all incomes and gains

Make use of Rules, Pass Journal Entries.

Mr. Powel Started a business with 2.5 million in the SBI Bank on 1st July.

July 2. Bought office furniture by cheque Rs. 1,50,000/-

July 3 Bought machinery for Rs. 7,50,000 on credit from planners ltd

July 5 Bought a motor van paying by cheque Rs. 6,00,000/-

July 8 Sold some of the office furniture (defective) to Walker & Sons for Rs. 60,000 on Credit.

July 15 Paid part of the amount owing to planners Ltd Rs. 3,50,000/- by SBI cheque

July 23 Received the amount due from Walker & son Rs. 60,000 in cash

July 31 Bought more machinery by SBI cheque Rs. 28,000

July 31 Paid Salaries Rs. 12,000/- Office Secretary.