Double Entry Principles Flashcards
1
Q
Account
A
An account is a systematic presentation of all transactions related to a particular head
2
Q
Types of accounts
A
- Personal accounts
- Real accounts
- Nominal accounts
3
Q
Personal accounts (accounts for persons)
A
- debit the receiver
* credit the giver
4
Q
Real accounts (related to assets and properties, either tangible or intangible)
A
- debit what comes into the business
* credit what goes out of the business
5
Q
Nominal accounts (related to income/gains and expenses/losses)
A
- debit all expenses and losses of the business
* credit the incomes and gains of the business.
6
Q
When Asset or Expense account increases
A
Debit the account
7
Q
When Asset or Expense account decreases
A
Credit the account
8
Q
When Liability, Equity or Revenue Account increases
A
Credit the account
9
Q
When Liability, Equity or Revenue Account decreases
A
Debit the account.
