which of tthe following is correct regarding rule of debit and credit ........

Accountancy (Phase -I & II) Accounting cycles

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which of tthe following is correct regarding rule of debit and credit

credit increase in asset and debit decrease in liabilities

debit increase in asset and credit decrease in liabilities

Both 1 and 2

none of these

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Explanation:

increase in asset is recorded on the debit side and decrease in asset is recorded will be recorded on the credit side. so the rule is debit the increase in assets and credit the decrease in assets

FOR EXAMPLE: a furniture is purchase for Rs. 5,000 , it will be recorded on the debit side of furniture account,since the furniture has increased by this amount. again if the firm sells furniture of Rs. 2,000, the reduction will be recorded on the credit side of the furniture a/c

By: SWAPNIL AGGARWAL

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Robin Arora

I MARKED 2ND

PARAS GARG

the option mentioned here is "credit decrease in liabilities" but here in answer the explanation is different so the correct answer will be "none of these"

skj

NONE OF THESE WIL BE THE ANSWER