Question

Defalcation made by accountant Rs.
4000.journal entry.

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Cash Embezzlement  A/c - Nominal A/c , its the loss to the company therefore its debited

Cash A/c - Real A/c , where money goes out of the business therefore its credited

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Journal entry

Cash Embezzlement A/c   Dr     4000

          To Cash A/c                                      4000

(Being cash defalcation made by accountant )