FUNDAMENTAL RULES OF ACCOUNTING

Ø  Purchases Account always Debit

Ø  Purchase Returns Account always Credit

Ø  Sales Account always Credit

Ø  Sales Returns always Debit

Ø  Expense Accounts always Debit

Ø  Income Accounts always Credit

Ø  Asset Accounts always Debit

Ø  Liability Accounts always Credit

Ø  Customer Accounts always Debit

Ø  Supplier Accounts always Credit

Ø  Account Receivables always Debit

Ø  Account Payables always Credit

Ø  Account Paid in Advance always Debit

Ø  Account Received in Advance always Credit

Ø  Capital Account always Credit

Ø  Drawings Account always Debit

Ø  Loans from others always Credit

Ø  Loans to others always Debit