Nature of Accounts and Rules of Debit and Credit Test 15

Accounts relating to income, revenue, gain, expenses and losses are termed as nominal accounts. 

A journal is known as the original book of entry and is also called the prime entry. All the accounting transactions are first recorded in journal in the order of the transactions taking place. Such order is called a chronological order.

Assets, expenses, losses, and the owner's drawing account will normally have debit balances. 

Their balances will increase with a debit entry, and will decrease with a credit entry. Liabilities, revenues and sales, gains, and owner equity and stockholders' equity accounts normally have credit balances.

In bookkeeping, a debit can signify an increase in an asset, an expense, and the owner's draws. A debit can also signify a decrease in a liability, revenues, and owner's equity.

The left side of all accounts, whether asset, liability or capital, is called debit and the right side is called as credit. 

A credit may signify: An Increase in a liability or owner's equity account or a Decrease in an asset account.

Journal is a book of accounts in which all day to day business transactions are recorded in a chronological order i.e. in the order of their occurence. 

Transactions when recorded in a Journal are known as entries.It is the book in which transactions are recorded for the first time.

Books of original entry refers to the accounting journals in which business transactions are initially recorded. The information in these books is then summarized and posted into a general ledger, from which financial statements are produced.

b'The additional capital amounting Rs 50,000 as add of the  asset & capital so as increase  '

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types: