Answer:
Hi there!
For accounting treatment , accounts are broadly classified into three types as personal account , real account and nominal account or fictitious account. They are as follows:
The account which is related with a person or organization ( entity ), is termed as personal account. Here person means natural persons like Anna , Olivia , James etc and organization represents the artificial persons created by law. The rule for debit and credit for personal accounts is ;
Debit : The receiver
Credit : The giver
The account which is related with assets or property is known as real account. Land and building , plant and machinery, and furniture and fixtures are the examples of the real account. Properties or assets are either incoming or outgoing from the organization. The rule for real account is ;
Debit : What comes in
Credit : What goes out
The account which is related to expenses or loss and income or gain is known as nominal account. Rent , wages , salary , discount , interest and commission are the examples of nominal account. The rule of nominal account is;
Debit : the expenses or losses
Credit : the income or gains
Hope this helps..
Best regards!!
Answer: Yaddof Adjusted Cash Balance is $3,290
Explanation: Bank reconciliation of Yaddof Company as at 30th June
Balance per Bank $3,600
Less:Outstanding Checks ($680)
Add: Deposit in transit $500
Less: Credit Memo for Interest ($150)
Add: Bank Service Charge $20
Adjusted Cash Balance $3,290
Answer:
The correct entry would be:
Account Debit Credit
Finished Goods xxxxx
Work-in Process Curing xxxxx
Work-in Process Blending xxxxxx