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  1. ramesh solanki says:

    thank u very much gulshan g

  2. kritika says:

    generally, debit is benefit receiving aspect…then why are expenses and losses considered as debit in nominal account…….?????

    • gulshan says:

      You know that expenses or losses will be always debited and incomes or gains will be always credited. So, we come to the conclusion :
      Loss of goods by fire – It is just possible that some goods may catch fire and result in loss to the business. This is definitely loss.
      Loss of goods by fire will be deibted. Such goods have been destroyed, not sold, so their valuation will be made at cost price. SO purchase a/c will be credited.
      THe journal entry for this transaction will be made as follows:
      Loss of Goods by fire – DR
      TO purchases a/c, see the example for expenses.
      Purchases a/c – dr to Mohan.
      When we purchase goods from Mohan, then in this case, purchases a/c is expenses for us. So purchases a/c will be debited and mohan will be credited.

      • kritika says:

        but why are expenses and losses recorded in debit when debit is benefit receiving aspect

        • Saurabh says:

          Who says that the Debit is benefit receiving aspect?
          Debit means something is being deducted while the credit means something is being added or entrusted..
          and therefore expenses and losses are always covered as debit and not credit..
          Take this in another context, if you withdraw money from bank account, your account is being debited and not credited.. The purpose of debit may be sometimes beneficial and sometimes not..
          This is solely my view

        • gulshan says:

          How do you infer that the debit is benefit receiving aspect?
          First of all there is increase in assests and expenses than this is loss for us. There is decrease in liabilities, capital and revenue than this is profit for us.therefore expenses and losses are always covered as debit and not credit..

  3. kritika says:

    ok.. so you define debit as something that is deducted……….????????

    • gulshan says:

      You mobile balance is always deducted when you use it to make calls… Where as when you recharge, your mobile balance is credited..
      The concept of debit and credit is universally applicable to various aspects and phenomenon of life and living..
      I hope you understand it now..

  4. kritika says:

    sry…….but not really……….

    • gulshan says:

      You don’t agree or you don’t understand ??
      It is plain simple… Debit is related with deduction.. Whenever there is debit, there is deduction

      • maria says:

        why in personal account
        the reciever is debitted
        and the giver is creditted..

        even in real account
        debut what comes in
        credit what goes out

        i liked yourexample of
        recharging the phone

        but why in nominal accoun
        it seems to be the opposite!!..??:(

  5. Johnny says:

    Is purchase account a nominal or real account?

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