A/C Rule

 

Example of the Golden Rules of Accounting

In the below example, we have listed different type of transactions along with the type of accounts and details of debit/credit after applying the accounting rules.

Sl No.	Accounting Transaction	Accounts Involved	Type of account	Debit/ Credit
1.	Mr Sham started a business with Rs.60,000 cash.	Cash A/c Capital A/c	Real Personal	Debit what comes in Credit the giver
2.	Purchased goods for cash 25,000 Tk	Purchase A/c Cash A/c	Real Real	Debit what comes in Credit what goes out
3.	Sold goods for cash 20,000 Indo Rupiah	Cash A/c Sales A/c ( Inventory sold )	Real Real	Debit what comes in Credit what goes out
4.	Purchased goods from Mr Bhasha for cash 10,000 dirham	Purchase A/c (Inventory Purchased) Cash A/c	Real Real	Debit what comes in Credit what goes out
5.	Sold goods to Mr Sam  8,000 KES on credit.	Mr Sam  A/c Sales A/c ( Inventory sold )	Personal Real	Debit the receiver Credit what goes out
6.	Purchased furniture for Rs.6,000	Furniture A/c Cash A/c	Real Real	Debit what comes in Credit what goes out
7.	Paid rent 1,500 Tk	Rent A/c Cash A/c	Nominal Real	Debit expenses Credit what goes out
8.	Paid wages 10,000 Indo rupiah from Bank	Wages A/c Bank A/c	Nominal Real	Debit expenses Credit what goes out
9.	Purchased goods from Ali Ltd on credit	Purchase A/c ( Inventory purchased ) Ali Ltd	Real Personal	Debit what comes in Credit the giver
10.	Dividend received in cash	Cash A/c Dividend	Real Nominal	Debit what comes in Credit income
11.	Salary outstanding	Salary A/c Salary Outstanding A/c	Nominal Representative personal	Debit expenses Credit the representative personal account