Golden Rules of Debit and Credit (Traditional Approach)

Select the most appropriate alternatives from the given below and rewrite the statement:

Debit the receiver, Credit the ____________

Prepare a chart showing Analysis of the following transactions in a Tabular form according to the Traditional Approach:

1. Rajasaheb started the business with cash of ₹ 85,000.

2. Goods Purchased for cash ₹ 5,000.

3. Sold goods on credit worth ₹ 6,000 to Ramesh.

4. Cash deposited into Bank of Maharashtra ₹ 12,000.

5. Interest received ₹ 700 from Radhika.

6. Paid Rent ₹ 2,000 to the landlord.

7. Bought goods on credit from Birajmohan ₹ 7,000.

8. Withdrew cash from bank ₹ 1,000 for office use.

9. Purchased computer ₹ 9,000 for cash.

10. Paid Mobile bill (office) ₹ 500.

11. Sold old Mobile ₹ 2,000.

12. Received Rent ₹ 1,000 from the tenant.

Answer in one sentence only:

State the rule of Nominal Account.

Answer in one sentence only:

State the rule of Personal Account.

Select the most appropriate alternatives from the given below and rewrite the statement:

Debit what comes in, Credit what ______

Select the most appropriate alternatives from the given below and rewrite the statement:

Debit all ______ and Credit all income and gains.

Fill in the blank:

Debit all expenses and losses, Credit all ______

State whether the following statement is True or False with reasons:

The rule of Nominal Account in Debit the receiver and Credit the giver.