Apply the Rules of Debit and Credit for each of the accounts as given in under modern approach.
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1. Capital brought in |
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|
Category |
Capital Accounts |
|
Rule |
Debit the decrease and Credit the increase |
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2. Land purchased |
|
|
Category |
Assets Accounts |
|
Rule |
Debit the increase and Credit the decrease |
|
3. Purchases A/c |
|
|
Category |
Expenses Accounts |
|
Rule |
Debit the increase and Credit the decrease |
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4. Sales A/c |
|
|
Category |
Revenue Accounts or Income and Gains A/c |
|
Rule |
Debit the decrease and Credit the increase |
|
5. Cash paid |
|
|
Category |
Assets Accounts |
|
Rule |
Debit the increase and Credit the decrease |