Livestock Economics, Marketing and Business Management

RULES FOR DEBIT AND CREDIT

• Transactions in journal are recorded on the basis of rules of debit and credit.
• For this purpose, business transactions have been classified into three categories:
  • Transactions relating to persons – Personal Accounts
  • Transactions relating to properties and assets – Real Accounts
  • Transactions relating to incomes and expenses – Nominal Accounts.

Personal	Real	Nominal
Natural Personal A/C	Tangible	Expenses and Losses
Artificial Personal A/C	Intangible	Incomes and Gains
Representative personal A/C