Checking whether a condition is true or not true is called ______ the condition
pls reply hurry its a test
Answers
Explanation:
Nominal Account
These accounts types are related to income or gains and expenses or losses. For example: – Rent A/c, commission received A/c, salary A/c, wages A/c, conveyance A/c, etc.
Rules
Debit all the expenses and losses of the business.
Credit the incomes and gains of business.
For Example – Salary paid to employees of the entity. Salary A/c will be debited when the expenses are incurred. Whereas, when an entity receives any interest, discount, etc these are credited whenever these are received by the entity.
There are some other accounts in accounting as well:
Cash Account – This account is used for keeping the records of payments done by cash, withdrawals, and deposits.
Income Account – Purpose of this account is to keep the record of the income sources of business.
Expense Account – This account tracks the expenditure of the business.
Liabilities – If there is any debt or loan then that amount comes under liabilities.
Equities – If there is an investment of the account owner or common stocks, retained earnings then these will fall under equities.
Examples on Types of Accounts
Write the accounts affected and applicable rule in the below-mentioned transactions.
Goods purchased for cash.
Cash Sales.
Sale of fixed assets
Payment of expenses.
Answer –
1. Debit Purchase account and credit cash account.
Rule Applicable: – Debit increase in expense or an asset. Credit decrease in assets.
2. Debit Cash account and credit sales account.
Rule Applicable: – Debit Increase in assets. Credit Decrease in revenue or assets.
3. Debit Expenses account and credit cash/bank account.
Rule Applicable: -Debit Increase in expense. Credit Decrease in assets.