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Double entry bookkeeping book12/20/2023 ![]() The next entry is the electricity bill that is paid. As the salary is a nominal account, the rule is to debit all expenses and cash, being a real account, is credited as the cash payment reduces the asset. In the above table, the first entry is the entry of salary paid. The following table shows an example of the double-entry of transactions in a journal. The total of debits and credits should be equal for the transactions to be balanced. The debit entry for a transaction will be on the left side of the general journal, while the credit entry will be on the right side of the journal. The main rule for the double-entry system entry is ‘debit the receiver and credit the giver’. The transaction recorded in two accounts reflect the debit in the account that receives value and credit in the other account that has given value. Thus, every transaction should be recorded in two accounts. Journal Entries of Double-Entry System of BookkeepingĮvery transaction entered in a journal involves a debit entry in one account and a credit entry in another account. The Nominal Accounts are general ledger accounts relating to all expenses, incomes, gains and losses. The Real Accounts are general ledger accounts connected with assets and liabilities other than individuals and people. Personal Accounts are general ledger accounts related to persons like individuals, associations and firms.
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