Friday, 10 February 2012

Examples of Personal Account

Personal Accounts:

A person may either receive the benefit of a transaction or give the benefit of a transaction. Therefore, the account of the person who receives the benefit of the transaction is debited, and the account of the person who gives the benefit of the transaction is credited.

The rule for debiting and crediting personal accounts is explained with the help of the following examples:

1.Received from Ramesh Rs. 2000.

In this transaction, the personal account involved is Ramesh's Account. The personal account of Ramesh gives the benefit, i.el., cash. So, Ramesh's Personal Account has to be credited.

2. Paid Ganesh Rs. 1,000.

The personal account involved in this transaction is Ganesh's Account. The personal acccount of Ganesh receives the benefit, i.e., cash. So, Ganesh's Personal Account has to be debited.

3.Purchased goods from David on credit Rs. 500

Here, the personal account involved is David's Account. The personal account of David gives the benefit of the transaction, i.e,. goods. Therefore, David's Personal Account has to be credited.

4. Sold goods to Henry on credit Rs. 600.

In this transaction, the personal account involved is Henry's Account. The personal account of Henry receives the benefit of the transaction, i.e., goods. So, Henry's Personal Account has to be debited.

No comments:

Post a Comment