Accountancy has two set of rules for debit and credit. One is traditional approach, and other is the modern approach. Accountancy students and students following finance subjects should know both methods of accountancy rule keeping. Both practices involve some level of technical knowledge and students can seek help of professional online expert help to solve traditional rules of debit and credit homework answers.
Accountants usually follow double entry system of recording transactions. There would be two sides for entering a transaction, and left side of journal or double entry is termed as debit section while right-hand side is termed as credit section. For every debit entry, there is a corresponding credit entry.
Traditional Rules of Debit and Credit Homework Answers
Debit receiver, here credit giver is the standard for traditional debit and credit. Owner accounts, shareholders customers, and suppliers do come under personal account.
Debit, what enters into the business in the form of assets. And credit, what goes out of the firm. Assets like building, furniture and other things come from the account. Machinery, plants, constructions also come under real account.
Debit, all expenses and losses incurred by the business. And credit, all incomes and gains of business. The income that is generated from the sale or the interest gain is some of the income that comes from this account. Interests given out due to some loan or debt are the expenditure that comes from the account.
Concept of modern approach
The modern approach is different from the traditional approach. The traditional approach is divided into three accounting sections while modern approach follows five elements; assets, liabilities, revenue, expense, and equity or the capital.
Assets are written on debit section of modern accounting. Assets mean immovable and movable property and also include cash balance. Liabilities are credit items and would show how much amount the company has to pay to others. Equity would refer to the paid-up capital along with the shares that are used for starting a business. Income means the sales and expenses would include a purchase made by organization.
Examples of traditional accounting
Assume that a company paid wages for $ 30,000.The entry for a student in traditional rules of debit and credit homework answers should be like this
Wages account is nominal, and cash account is real. As per the rule, debit all expenses under nominal account and credit what goes out under real.
Wages a/c Dr $ 30,000
To cash a/cÂ Â Â Â Â Â Â Â $ 30,000
Purchased goods from Mr. QÂ Â for $ 30,000
The account here is nominal. The reason is that purchase is an expense. The rule for a nominal account is that debit all expenses.
Purchases A/c Dr $ 30,000
To cash a/cÂ Â Â Â Â Â Â Â Â $ 30,000
Why professional expert help is needed for assignments?
So if a student does not get proper answer or do not understand, then issue in solving assignment would rise. They can get the proper solution by seeking the help of an expert. Checking websites would reveal the details of professional experts available for concerned subject and topic.
Students should have a clear and concise idea of debit and credit, and they should understand the concept in both approaches. That would help them gain a good career in financial management.
How to find right professional online expert?
Online expert help for traditional rules of debit and credit homework answers are plenty available. A student should check for certain qualities before submitting an assignment to professional expert.