Three Type of Accounts (1) Personal Account (Natural or artificial person) (2) Real Account(Assets like Cash ,bank,

gold, share, F.D) (3) Nominal Account(Expense, Income)

Balance Sheet is a statement of assets and liabilities as on a particular date i.e. as on 31-3-YYYY

Trading and Profit and Loss Account is prepared to know the results of business operations undertaken from 1-4-YYYY to 31-3-YYYY i.e. either profit or loss

Accountancy is done in BOOKS OF BUSINESS

Golden Rules for 3 types of accounts: (1) PERSONAL Accounts: Debit the receiver and credit the giver (2) REAL Account: Debit what comes in Credit what goes out (3) NOMINAL A/c Debit the expenses/loss Credit the income/gain/profit (1) Business has taken loan of Rs.40000 by cash from Mr.Satish Cash A/c(REAL, Debit what comes in) DR.40000 To Satish a/c(PERSONAL, credit the giver) 40000 (2) Cash deposited into bank Rs.10000 Bank A/c(REAL, Debit what comes in) 10000 To Cash A/c(REAL, Credit what goes out) 10000 (3) Interest income of Rs.800 on fixed deposit received by cheque. Bank A/c(REAL, Debit what comes in) Interest received a/c(NOMINAL, Credit the income) (4) Invested in Kotak Fixed deposit by issuing a cheque of Rs.50000

Kotak Fixed Deposit A/c(REAL, Debit what comes in) 50000 TO Bank A/c(REAL, Credit what goes out) (5) Rent received by cash of Rs.8000 Cash A/c(REAL, Debit what comes in) DR. 8000 TO Rent received a/c(NOMINAL, Credit the income) 8000 50000

(1) What is the golden rule for PERSONAL A/C??????? Debit the receiver Credit the giver (2) What is the golden rule for NOMINAL A/C??????? Debit the expenses/losses Credit the income/profit/gain (3) Interest Earned on State Bank of India fixed deposit Account is __NOMINAL__ type of account?????? (4) State Bank Of India Fixed Deposit Account is __REAL_____ type of account

Convert the following business events/transactions into JOURNAL entries in the books of business. (1) Business given a loan to Mr.Ramesh by cash of Rs.7000 Ramesh A/c(PERSONAL, Dr. the receiver) DR.7000 TO Cash a/c(REAL, Cr. what goes out) (2) Cash deposited into bank Rs.7000 Bank a/c(REAL, Dr. what comes in) DR.7000 TO Cash a/c(REAL, Cr. what goes out) 7000 (3) Cash withdrawn from bank Rs.6000 Cash a/c(REAL, Dr. what comes in) DR.6000 TO Bank a/c(REAL, Cr. what goes out) 6000 7000

(4) Purchased building worth Rs.3,00000 by cheque. Building A/c (REAL, Dr. what comes in) DR.300000 TO Bank A/c(REAL, Cr. what goes out) 300000

(5) Invested in ICICI Prudential Mutual Fund by issuing a cheque of Rs.100000 ICICI Prudential Mutual fund a/c (REAL) DR.100000 TO Bank A/c(REAL, Cr. what goes out) 100000

(6) Received dividend income of Rs.12000 on ICICI Prudential Mutual Fund, by cheque. Bank A/c(REAL, Dr. what comes in) DR.12000 TO Dividend on ICICI M.F A/c(NOMINAL, Cr. the income)

Please enter JOURNALS for the following business transactions in the books of business (1) Taken a loan of Rs.10000 by cheque from Mr.A

Bank A/c(REAL, Dr. what comes in) DR.10000 TO Mr.A a/c(PERSONAL, Cr. the (LOAN) giver) 10000 (2) Given a loan of Rs.20000 to Mr.B by cash Mr.B a/c(PERSONAL, Dr. the (LOAN) receiver) DR.20000 TO Cash a/c(REAL, Cr. what goes out) (3) Two-wheeler has been sold to Mr.C by cash of Rs.9000 Cash A/c(REAL, Dr. what comes in) Rs.9000 TO Two-wheeler a/c(REAL, Cr. what goes out) 9000 (NOTE: Mr.C is neither LOAN giver nor LOAN receiver) (4) Furniture has been purchased from Mr.D worth Rs.13000 on credit Furniture A/c(REAL, Dr. what comes in) DR.13000 TO Mr.D a/c(PERSONAL, Cr. the (LOAN) giver) 13000 (5) Four-wheeler has been purchased from Mr.E on credit worth Rs.300000 Four-wheeler A/c(REAL, Dr. what comes in) DR.300000 TO Mr.D a/c(PERSONAL, Cr. the (LOAN) giver) 300000