Question

what is the objective behind preparing an account? what is meant by recording on debit and credit sides of any account? explain with examples.

Answer 1

so that we can dave our money, 2 sothat bank couldhave its money and can give money to those who have stored it

Answer 2

The main objective is to  * to keep systematic records
* to determine profits and loss
*to ascertain financial position
*to communicate the information

recording on debit and credit sides of any account can be done with the golden rules of accounting

*personal account = rules says
debit- the receiver
credit- the giver
eg: ram , firms, company, organisation such as bank,etc

real account= rules says
debit- what comes in
credit- what goes out
eg: cash, assets like plant and machinery, building, furniture, inventory,etc

nominal account= rule says
debit- all expenses and losses
credit- all incomes and gains
eg: salary or wages paid, interest earned, interest paid, commission paid, depreciation,etc.