Lesson 14 : Book Keeping And Accounting


It may be noted that each of the above elements has two parts that have to be recorded. In order to have a systematic record each element will need to be recorded independently. Firms or persons will be provided with independent pages (Accounts), divided vertically in two parts-a debit side and a credit side.

The amount will be written on the debit side if a person or firm is a receiver and it will be written on the credit side of a firm or person is a giver. Similarly, each property will be recorded on an independent page. Thus. Whenever a property comes in it will be recorded on the debt side and if the property goes out it will appear on the credit side.

In same way all incomes and expenses will be provided with independent pages in books of account: Expenses will be recorded on the debit side and incomes on the credit side. In all accounts the debit side is the left hand side and the credit is on the right hand side of every page.

These Accounts are maintained according to the user and can be classified as


  • Personal account: When all transactions relating to one person are set out in one page, it is known as a 'Personal Account' showing transactions in debt and credit form. Similarly
  • Real Account: When all transactions are pertaining to one property, it is termed as a 'Real Account, e.g. Cash Book or Cash Account.
  • Nominal account: When expenses and incomes are recorded independently on separate pages, they are known as 'Nominal accounts'.
Last modified: Saturday, 26 May 2012, 6:56 AM