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What is personal Account? Difference between personal and real Account.
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What is personal Account? Difference between personal and real Account...
Accounting is fundamentally based on Debit and Credit. There are 3 golden rules in Accounting and each A/c relates to a rue.
1 Personal A/c : Debit the receiver ; Credit the giver - this is in connection with personal Account. Personal Accounts reflect transactions with persons - Creditor (to whom you owe money), Debtor (who owes money to you) etc.
2 Real A/c : Debit what comes in ; Credit what goes out- this is in connection with Assets. when you buy assets or sell assets in your business, you will apply this rule.
3 Nominal A/c : Debit all Expenses and losses ; Credit all Incomes and gains- This is in connection with Expenses, loss, Income and Gains. Purchases A/c, Sales A/c, Expenses like salaries, Rent etc.
Example: Mr. A gave me loan of Rs. 10,000 in cash :
Now cash is an asset- Real account rule applies: Debit what comes in - debit Cash A/c
It is Mr. A who has given me loan, so Personal Account Rule applies - credit the giver- So credit it to Mr. A’s A/c because he will be a creditor.
Cash A/c Dr 10,000
To A’s a/c 10,000
some will be combination of two Accounts while some transactions will involve same type of account. For example, withdrawal of cash from Bank involves Real Account in both cases.
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What is personal Account? Difference between personal and real Account...
Personal Account:
Personal accounts are accounts that are related to individuals, firms, or organizations. These accounts represent the people or entities with whom the business has a financial relationship. Examples of personal accounts include accounts for customers, suppliers, and owners.
- Debit the receiver | Credit the giver: When dealing with personal accounts, the receiver is debited when money is received from them, and the giver is credited when money is given to them.
Real Account:
Real accounts are accounts that represent tangible assets like cash, buildings, machinery, and other fixed or current assets of a business. These accounts show the financial position of a business and are not related to individuals or entities.
- Debit what comes in | Credit what goes out: In the case of real accounts, when there is an increase in assets, they are debited, and when there is a decrease, they are credited.
In summary, personal accounts deal with individuals or entities, whereas real accounts deal with assets of the business. The rules for recording transactions in these accounts differ based on whether they are personal or real accounts. Understanding the distinction between these two types of accounts is essential for accurate financial reporting and analysis in accounting.
Personal accounts are accounts that are related to individuals, firms, or organizations. These accounts represent the people or entities with whom the business has a financial relationship. Examples of personal accounts include accounts for customers, suppliers, and owners.
- Debit the receiver | Credit the giver: When dealing with personal accounts, the receiver is debited when money is received from them, and the giver is credited when money is given to them.
Real Account:
Real accounts are accounts that represent tangible assets like cash, buildings, machinery, and other fixed or current assets of a business. These accounts show the financial position of a business and are not related to individuals or entities.
- Debit what comes in | Credit what goes out: In the case of real accounts, when there is an increase in assets, they are debited, and when there is a decrease, they are credited.
In summary, personal accounts deal with individuals or entities, whereas real accounts deal with assets of the business. The rules for recording transactions in these accounts differ based on whether they are personal or real accounts. Understanding the distinction between these two types of accounts is essential for accurate financial reporting and analysis in accounting.
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What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ]
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What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ] for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ] covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ].
What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ] for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ] covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ].
Solutions for What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ] in English & in Hindi are available as part of our courses for Class 11.
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Here you can find the meaning of What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ] defined & explained in the simplest way possible. Besides giving the explanation of
What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ], a detailed solution for What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ] has been provided alongside types of What is personal Account? Difference between personal and real Account. Related: Basic Accounting Accounts:- It is used to give the information of money which comes in business and go out from business. Accountings:- Accounting is the systematic recording of daily transaction business classification and summarization. Process of Accounting Transaction Recording Classification Summarization Analysis Interpretation Classification of the types of the accounts and rules of debit and cread it. (1) Personal Account:- These Accounts related any person or firm e.g. Accounting for customers, supplier, owners. [Debit the receiver | Cread it giver ] (2) Real Accounts:- These Accounts for fixed and current assets such as cash, building, machinery etc. [Debit comes in | Cread it goes out ] theory, EduRev gives you an
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