Question

hello friends!! plz solve this transaction.paid for conveyance expenses rs.1000. tell me that in this transaction which account is Debit and which is credit one????

Answer 1

3 golden rules

• personal accounts - debit the received and credit the giver

• real accounts -debit what comes in and credit what comes out

• nominal accounts - debit all the expenses and losses, credit all the income and gains

2 accounts affected in the given question

conveyance expenses - nominal account, as conveyance expenses is the expenses it should be debited as per golden rules

Cash A/c - real account , cash goes out of business as payment made therefore its credited

Journal entry

Conveyance expenses A/c Dr 1000

To cash A/c 1000

(being conveyance expenses paid )

Hope its useful..!