Question

Explain the rules of Debit and Credit in Double Entry System :-

i) According to Modern Approach

ii) According to Traditional Approach​

Answer 1

Answer:

Accounting for financial transactions can be classified into two types of approaches.

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Rules of Debit and Credit under the Modern Approach.

Asset Accounts Debit the increase; Credit the decrease

Revenue Accounts Credit the Increase; Debit the decrease

Expense Accounts Debit the increase; Credit the decrease