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Explain the rules of debit and credit of journal .with example ? |
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Answer» The following are the rules of debit and credit which GUIDE the system of accounts, they are known as the GOLDEN Rules of ACCOUNTANCY: FIRST: Debit what comes in, Credit what goes out. Second: Debit all expenses and losses, Credit all incomes and GAINS. Third: Debit the receiver, Credit the giver. |
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