EDUCARE (A Unique Coaching Centre)

3. ISMAIL MADAN LANE, KOLKATA – 700073

CONTACT – SHABBIR AHMED
MOBILE : 9883027293/7003508493

RULES FOR DEBIT AND CREDIT AS PER MODERN APPROACH

TYPES OF ACCOUNT
CAPITAL ASSET LAIBILITY EXPENSE INCOME
INCREASE- Cr INCREASE- Dr INCREASE- Cr INCREASE- Dr INCREASE- Cr
DECREASE- Dr DECREASE- Cr DECREASE- Dr DECREASE- Cr DECREASE- Dr

1. Started business with cash Rs 50,000.

CASH – ASSET – INCREASE – Dr
CAPITAL – CAPITAL – INCREASE – Cr
2. Started business with machinery Rs 20,000.
MACHINERY – ASSET – INCREASE – Dr
CAPITAL – CAPITAL – INCREASE – Cr
3. Started business with cash Rs 60,000 and machinery Rs 40,000.
CASH – ASSET – INCREASE – Dr
MACHINERY – ASSET – INCREASE – Dr
CAPITAL – CAPITAL – INCREASE – Cr
4. Opening balance of assets:
Land and Building Rs 50,000
Plant and Machinery Rs 20,000
Furniture and Fixture Rs 10,000
Bills Receivable Rs 5,000
Sundry Debtors Rs 15,000
Opening balance of liabilities:
Loan Rs 40,000
Sundry Creditors Rs 10,000
Bills Payable Rs 3,000
General Reserve Rs 2,000.

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5. Deposited cash into bank Rs 10,000.
BANK – ASSET – INCREASE – Dr
CASH – ASSET – DECREASE – Cr
6. Opened a bank account with Rs 20,000.
BANK – ASSET – INCREASE – Dr
CASH – ASSET – DECREASE – Cr
7. Withdrew from bank for office use Rs 1,000.
BANK – ASSET – DECREASE – Cr
CASH – ASSET – INCREASE – Dr
8. Withdrew from bank for personal use Rs 500.
DRAWINGS – CAPITAL – DECREASE – Dr
BANK – ASSET – DECREASE – Cr
9. Withdrew cash for personal use Rs 250.
DRAWINGS – CAPITAL – DECREASE – Dr
CASH – ASSET – DECREASE – Cr
10. Withdrew cash for office use Rs 100.
EXPENSES – EXPENSE – INCREASE – Dr
CASH – ASSET – DECREASE – Cr
11. Withdrew goods for personal use Rs 2,000.
DRAWINGS – CAPITAL – DECREASE – Dr
PURCHASE – EXPENSE – DECREASE – Cr
12. Withdrew stationery for personal use Rs 150.
DRAWINGS – CAPITAL – DECREASE – Dr
STATIONERY – EXPENSE – DECREASE – Cr
13. Distributed goods as free sample Rs 1,500.
ADVERTISEMENT – EXPENSE – INCREASE – Dr
PURCHASE – EXPENSE – DECREASE – Cr
14. Bought goods for cash Rs 10,000.
PURCHASE – EXPENSE – INCREASE – Dr
CASH – ASSET – DECREASE – Cr
15. Bought goods from Rakesh for cash Rs 10,000.
PURCHASE – EXPENSE – INCREASE – Dr
CASH – ASSET – DECREASE – Cr

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16. Bought goods from Rakesh on credit Rs 10,000.
PURCHASE – EXPENSE – INCREASE – Dr
RAKESH – LIABILITY – INCREASE – Cr
17. Bought goods from Rakesh Rs 10,000.
PURCHASE – EXPENSE – INCREASE – Dr
RAKESH – LIABILITY – INCREASE – Cr
18. Bought goods by cheque Rs 10,000.
PURCHASE – EXPENSE – INCREASE – Dr
BANK – ASSET – DECREASE – Cr
19. Bought goods worth Rs 10,000 less trade discount @ 20%.
PURCHASE – EXPENSE – INCREASE – Dr Rs 8,000
CASH – ASSET – DECREASE – Cr Rs 8,000
20. Bought goods worth Rs 10,000 less cash discount @ 10%.
PURCHASE – EXPENSES – INCREASE – Dr Rs 10,000
CASH – ASSEST – DECREASES – Cr Rs 9,000
DISCOUNT RECEIVED – INCOME – INCREASE – Cr Rs1000
21. Bought goods worth Rs 10,000 less trade discount @ 10% and cash discount @ 5%.
PURCHASE – EXPENSES – INCREASE – Dr Rs 9,000
CASH – ASSEST – DECREASES – Cr Rs 8,550
DISCOUNT RECEIVED – INCOME – INCREASE – Cr Rs 450
22. Bought machinery for cash Rs 20,000.
MACHINERY – ASSET – INCREASE – Dr
CASH – ASSET – DECREASE – Cr
23. Bought furniture from R. C. Bros. on credit Rs 5,000.
FURNITURE – ASSET – INCREASE – Dr
R. C. BROS – LIABILITY – INCREASE – Cr
24. Bought stationery by cheque Rs 2,000.
STATIONERY – EXPENSE – INCREASE – Dr
BANK – ASSET – DECREASE – Cr
25. Sold goods for cash Rs 25,000.
SALES – INCOME – INCREASE – Cr
CASH – ASSET – INCREASE – Dr

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26. Sold goods to Manish for cash Rs 25,000.
SALES – INCOME – INCREASE – Cr
CASH – ASSET – INCREASE – Dr
27. Sold goods to Manish on credit Rs 25,000.
SALES – INCOME – INCREASE – Cr
MANISH – ASSEST – INCREASE – Dr
28. Sold goods to Manish Rs 25,000.
SALES – INCOME – INCREASE – Cr
MANISH – ASSEST – INCREASE – Dr
29. Sold goods by cheque Rs 25,000.
SALES – INCOME – INCREASE – Cr
BANK – ASSET – INCREASE – Dr
30. Sold goods worth Rs 20,000 less trade discount @ 20%.
SALES – INCOME – INCREASE – Cr Rs 16,000
CASH – ASSET – INCREASE – Dr Rs 16,000
31. Sold goods worth Rs 20,000 less cash discount @ 10%.
SALES – INCOME – INCREASE – Cr Rs 20,000
CASH – ASSET – INCREASE – Dr Rs 18,000
DISCOUNT ALLOWED – EXPENSE – Dr Rs 2,000
32. Sold goods worth Rs 20,000 less trade discount @ 10% and cash discount @ 5%.
SALES – INCOME – INCREASE – Cr Rs 18,000
CASH – ASSET – INCREASE – Dr Rs 17,100
DISCOUNT ALLOWED – EXPENSE – Dr Rs 900
33. Sold machinery for cash Rs 15,000.
MACHINERY – ASSET – DECREASE – Cr
CASH – ASSET – INCREASE – Dr
34. Sold furniture to P. Mathur on credit Rs 8,000.
FURNITURE – ASSET – DECREASE – Cr
P. MATHUR – ASSET – INCREASE – Dr
35. Sold office equipment and received a cheque Rs 3,000.
EQUIPMENT – ASSET – DECREASE – Cr
BANK – ASSET – INCREASE – Dr
36. Received cash from Mukesh Rs 2,000.
CASH – ASSET – INCREASE – Dr
MUKESH – ASSET – DECREASE – Cr
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37. Received a cheque from Bhola Rs 5,000.
BHOLA – ASSET – DECREASE – Cr
BANK – ASSET – INCREASE – Dr
38. Received cash from Sanjay Rs 4,900 in full settlement of Rs 5,000.
CASH – ASSET – INCREASE – Dr
SANJAY – ASSET – DECREASE – Cr
DISCOUNT ALLOWED – EXPENSE – Dr
39. a. Received a cheque from Shyam Rs 5000.
SHYAM – ASSET – DECREASE – Cr
CASH – ASSET – INCREASE – Dr
b. Deposited Shyam’s cheque into bank next day
CASH – ASSET – DECREASE – Cr
BANK – ASSET – INCREASE – Dr
40. Paid to Anil in cash Rs 3,000.
ANIL – LIABILITY – DECREASE – Dr
CASH – ASSET – DECREASE – Cr
41. Paid to Bimal by cheque Rs 6,000.
BIMAL – LIABILITY – DECREASE – Dr
BANK – ASSET – DECREASE – Cr
42. Paid to Kamal in cash Rs 9,500 in full settlement of Rs 10,000.
KAMAL – LIABILITY – DECREASE – Dr
CASH – ASSET – DECREASE – Cr
DISCOUNT RECEIVE – INCOME – INCREASE – Cr
43. Returned goods to Rakesh 1,000.
RETURN OUTWARD – INCOME – INCREASE – Cr
RAKESH – LIABILITY – DECREASE – Dr
44. Returned goods from Manish Rs 2,000.
RETURN INWARD – EXPENSE – INCREASE – Dr
MANISH – ASSET – DECREASE – Cr
45. Borrowed loan from bank Rs 15,000.
LOAN – LIABILITY – INCREASE – Cr
BANK – ASSET – INCREASE – Dr
46. Given loan to Armaan Rs 10,000 in cash.
LOAN – ASSET – INCREASE – Dr
CASH – ASSET – DECREASE – Cr
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47. Paid wages in cash Rs 2,000.
WAGES – EXPENSE – INCREASE – Dr
CASH – ASSET – DECREASE – Cr
48. Paid salary by cheque Rs 5,000.
SALARY – EXPENSE – INCREASE – Dr
BANK – ASSET – DECREASE – Cr
49. Paid interest on loan in advance Rs 500.
PREPAID INTEREST ON LOAN – ASSET – INCREASE – Dr
CASH – ASSET – DECREASE – Cr
50. Rent due but not yet paid Rs 7,000.
RENT – EXPENSE – INCREASE – Dr
OUTSTANDING RENT – LIABILITY – INCREASE – Cr
51. Received commission in cash Rs 200.
COMMISSION RECEIVED –INCOME – INCREASE – Cr
CASH – ASSET – INCREASE – Dr
52. Received interest on investment by cheque Rs 1,000.
INTEREST ON INVESTMENT – INCOME – INCREASE – Cr
BANK – ASSET – INCREASE – Dr
53. Received commission in advance Rs 500.
PRERECEIVED COMMISSION – LIABILITY – INCREASE – Cr
CASH – ASSET – INCREASE – Dr
54. Interest due but not yet received Rs 700.
INTEREST RECEIVED – INCOME – INCREASE – Cr
ACCRUED INTEREST RECEIVED – ASSET – INCREASE – Dr
55. Charged depreciation on machinery Rs 500.
DEPRECIATION – EXPENSE – INCREASE – Dr
MACHINERY – ASSET – DECREASE – Cr
56. For bad debts
BAD DEBTS – EXPENSE – INCREASE – Dr
DEBTORS – ASSET – DECREASE – Cr
57. For bad debts recovery
BAD DEBTS RECOVERY –INCOME – INCREASE – Cr
CASH/BANK – ASSET – INCREASE – Dr

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58. For sale or disposal of any old assets at a profit.
CASH/BANK – ASSET – INCREASE – Dr
ASSETS – ASSET – DECREASE – Cr
PROFIT AND LOSS – EXPENSE – INCREASE – Dr
59. For sale or disposal of any old assets at a loss.
CASH/BANK – ASSET – INCREASE – Dr
ASSETS – ASSET – DECREASE – Cr
PROFIT AND LOSS – INCOME – INCREASE – Dr
60. For abnormal loss of goods (fire/stolen)
PROFIT AND LOSS – EXPENSE – INCREASE – Dr
PURCHASE – EXPENSE – DECREASE – Cr
61. For drawing of a bill of exchange on debtors.
BILLS RECEIVABLE – ASSET – INCREASE – Dr
DEBTORS – ASSET – DECREASE – Cr
62. For acceptance of a bill of exchange.
BILLS PAYABLE – LIABILITY – INCREASE – Cr
CREDITORS – LIABILITY – DECREASE – Dr