tell me the rule of real account?
Answers
Answer :
The rule related to real account states debit what comes in, credit what goes out. In other words, if something comes into business, it shall be debited and if something goes out of business, it shall be credited.
For example : An asset purchased for cash would be accounted as per rules of real account wherein asset is what came into business, so asset account will be debited and cash is something that got out of business, so cash account will be credited.
Answer:
The Golden Rules of Accounting
Debit The Receiver, Credit The Giver. This principle is used in the case of personal accounts. ...
Debit What Comes In, Credit What Goes Out. This principle is applied in case of real accounts. ...
Debit All Expenses And Losses, Credit All Incomes And Gains.