“Debit all Expenses and Losses, Credit all Gains and Income” is the principle to record journal entry for ______ Accounts.
Nominal
The correct answer is option 4. Nominal accounts are used for recording expenses, losses, gains, and income. The rule "Debit all Expenses and Losses, Credit all Gains and Income" applies to nominal accounts in accounting.
Important Questions from Journal Entries
What will be the journal entry for recording this transaction?
Returned goods to Mr. B of Rs. 500 and paid to Mr. B Rs. 4,000 in full settlement for buying goods worth Rs. 5,000.
1. Mr. B A/c Dr
Rs. 5,000
To Purchases A/c
Rs. 4,000
To Return Outwards A/c
Rs. 5,00
2. Mr. B A/c Dr
Rs. 5,000
To Cash A/c
Rs. 4,000
To Return Outwards A/c
Rs. 500
To Discount Received A/c
Rs. 500
3. Mr. B A/c Dr
Rs. 4,500
To Cash A/c
Rs. 4,000
To Discount Received A/c
Rs. 500
4. Mr. B A/c Dr
Rs. 4,000
To Cash A/c
Rs. 4,000
________ is often referred to as book of prime entry or the book of original entry.
"Each transaction is analysed into the debit aspect and the credit aspect. This helps to find out how each transaction will financially affect the business". The given statement is regarded as which function of journal?
Recording of business transactions are done in a chronological manner in ____.
What will be the amount of credit purchases, if the opening balance of creditors is Rs.7,600; cash paid to creditors Rs.20,000; discount allowed by them Rs.500; Returns Outward are Rs.2,400; Bills payable accepted Rs.4,600 and the closing balance of creditors is Rs.9,500?
