Summary Class 11 Accountancy Notes

Class XI




ACCOUNTANCY
RULES OF DEBIT
AND CREDIT
PRASHANT KIRAD

, PRASHANT KIRAD

Ch:6 RULES OF DEBIT AND CREDIT

What is Rule of Debit and Credit.
In accounting, the rules for debit and credit are:
Assets: Debit increases assets; credit decreases assets.
Liabilities: Credit increases liabilities; debit decreases liabilities.
Equity: Credit increases equity (capital); debit decreases equity (drawings).
Income: Credit increases income; debit decreases income.
Expenses: Debit increases expenses; credit decreases expenses.
These rules help ensure accurate recording of transactions in accounting books.

Traditional Approach:
Personal Account:
(Includes individuals, firms, debtors, creditors, etc.)
Debit: The receiver
2th
Credit: The giver
Real Account: & 1
1th
(Includes tangible or intangible assets such as land, buildings, etc.)

d 1
Debit: What comes in
ira
Credit: What goes out
t
Nominal Account:K
an
(Includes revenue, sales, expenses, purchases)
h
s
Pra
Debit: Expenses and losses
!
Credit: Income and profit ega
ai aay
xam m A)
E (EM
Modern Approach: