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AED(د.إ)Traditional method of recording transactions
R46.00
Use, by you or one client, in a single end product which end users are not charged for. The total price includes the item price and a buyer fee.
Resource Description
, Under the Traditional approach, the two fold aspects called debit and credit for each transaction are recorded in the journal by following double entry system. According to double entry system of book keeping, for the purpose of recording transactions accounts are classified as Personal account, Real account and Nominal account.
The following are the Golden Rules of Double entry system:
|
Personal account |
Debit the receiver |
Credit the giver |
|
Real account |
Debit what comes in |
Credit what goes out |
|
Nominal account |
Debit all expenses and losses | Credit all incomes and gains |
. When recording each transaction, the total amount debited must equal to the total amount credited.
In this Unit, how to make an entry for various transactions by following the rule of double entry with detailed analysis is presented. This unit will help to understand as to how to make an entry when different transaction occurs. Traditional method is one of the methods which form an important basis for recording the transactions by following double entry system of book keeping.
