“Every debit must have a corresponding credit.” Discuss.
Download our app for free and get started
Yes because in every transaction credit and debit both are equal.
For example - rajesh bought a pen of ₹ 50.
He get a pen in return of cash.
So purchases is debited and cash is credited as he recieves pen and the debit is the receiver and cash is credited as credit is the giver and he gives cash.
For example - rajesh bought a pen of ₹ 50.
He get a pen in return of cash.
So purchases is debited and cash is credited as he recieves pen and the debit is the receiver and cash is credited as credit is the giver and he gives cash.
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionThe capital of a business is ₹ 2,00,000 and outside liabilities are 1,50,000. Calculace the total assets of the business.
- 2View SolutionGive one limitation of Journal.
- 3View SolutionRent is paid by cheque. Which account will be credited and why?
- 4View SolutionWhat is Compound Journal Entry?
- 5View SolutionWhat entry is passed when cheques received from the customers are not sent to bank on the same day.
- 6View SolutionIf the Capital is ₹ 2,60,000 and Assets are ₹ 5,00,000, what is the amount of Liabilities?
- 7View SolutionWhat is meant by owner's capital?
- 8View SolutionWhat is the rule of recording transactions in Nominal Accounts?
- 9View SolutionWhat is a Compound Voucher?
- 10View SolutionAshok purchased goods from Delhi Traders for ₹ 2,00,000. As per the, if Ashok made full payment within 21 days, he will get cash discount at 2.5%. Ashok paid ₹ 1,50,000 within the stipulated time. How much discount will he get?