Question

ing an account. Explain by balancing a Cash Account,
3. Write a short note on 'balancing an account. Explain by balancing cash account
4. What do you understand by debit' and 'credit ? Do you think debit always stands for decrease
in amount and credit for increase?
5. When do you credit a Liability Account? W What will you do to reduce the balance of any
Liability Account? Explain with an example.
6. Briefly state the rules of debiting and crediting accounts classified on the basis of Accounting
Equation​

Answer 1

Explanation:

Rules

1.personal ac-

Dr the receiver

Cr the giver

2.Real ac-

Dr what comes in

Cr what goes out

3.Nominal ac-

Dr all expenses

Cr all incomes & gains