EXAMPLE 1: PAGE 21

JULY 9, 1970: CASH SALES RS.600/-

FIRST STEP: Cash Account & Sales Account

SECOND STEP: Both are real account

THIRD STEP: Cash Account Should be debited because cash comes in and sales
account should be credited because goods have gone out of the business.

DATE PARTICULARS L.F DEBIT CREDIT

RS. RS.
1970
JULY 9 CASH ACCOUNT DR 600
TO SALES A/C 600

(Being Cash Sales made )

EXAMPLE 2: PAGE 21

July 10, 1970: Sold goods to Selvan on credit Rs.1,100

FIRST STEP: Sales and Selvan

SECOND STEP: Sales is a Real Account. Selvan is a Personal Account

THIRD STEP: Sales Account should be credited since goods go out of the business and
Selvan account should be debited since he receives a benefit

DATE PARTICULARS L.F DEBIT CREDIT

RS. RS.
1970 Selvan Account Dr 1,100
JULY 10 To Sales Ac 1,100
( Being credit sales made
to selvan)
EXAMPLE 3: PAGE 21

July 1, 1970: Kannan Commenced business with Rs.15000

FIRST STEP: Capital Account and Cash Account

SECOND STEP: Capital is a Personal Account. Cash is a Real Account

THIRD STEP: Capital Account is to be credited since the proprietor is a giver and Cash
Account to be debited.

DATE PARTICULARS L.F DEBIT CREDIT

RS RS

1970 Cash A/c Dr 15,000

July 31 To Kannan Capital A/c 15,000

(Being business commenced)

EXAMPLE 4: PAGE 23

July 31, 1970: Received Commission Rs.750

FIRST STEP: Commission and Cash

SECOND STEP: Commission Account is a income i.e. a Nominal Account, cash is a

Real account.

THIRD STEP: Commission Account to be credited and cash account to be debited

DATE PARTICULARS L.F DEBIT CREDIT

RS RS

1970 Cash A/c Dr 750

July 31 To Commission A/c 750

(Being Commission received)

EXAMPLE 5: PAGE 23

July 31, 2010: Paid Rent by Cheque Rs.25000

FIRST STEP: Rent and Bank

SECOND STEP: Rent is a Nominal Account, Bank is a Personal account

THIRD STEP: Rent being an expense it should be debited. Bank account should be
credited

DATE PARTICULARS L.F DEBIT CREDIT

RS RS

2010 Rent A/c Dr 25000

July 31 To Bank A/c 25000

(Being the rent for the month of July

2010 paid by Cheque No )