Understanding Debit and Credit in Accounting

The video tutorial explains the classification of accounts into real, personal, and nominal categories. It introduces the dual aspect concept, emphasizing that every transaction has two equal effects: debit and credit. The tutorial analyzes various transactions, demonstrating how to classify accounts and determine debit and credit effects. It covers sales, purchase, and cash transactions, explaining the rules for personal, real, and nominal accounts. The video concludes with a summary of these rules, providing a logical understanding of accounting principles.

What are the two equal effects in the dual aspect concept of accounting?

• Profit and Loss

• Asset and Liability

• Income and Expense

• Debit and Credit

In a sales transaction, which account is debited when goods are sold on credit?

• Sales Account

• Cash Account

• Customer's Account

• Expense Account

When a person gives the benefit of goods or cash, which account is credited?

• Debtor's Account

• Creditor's Account

• Purchase Account

• Sales Account

In a cash transaction, which accounts are affected?

• Furniture and Cash

• Sales and Cash

• Purchase and Sales

• Debtor and Creditor

What is the rule for debiting and crediting in a personal account?

• Debit all assets, credit all liabilities

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit all expenses, credit all incomes

According to the rules of nominal accounts, what should be credited?

• All assets

• All liabilities

• All expenses and losses

• All incomes and gains

Which type of account involves debiting what comes in and crediting what goes out?

• Capital Account

• Real Account

• Nominal Account

• Personal Account