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Theory Base of Accounting — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountTheory Base of Accounting6 Marks
Question
On which side will the decrease in the following accounts be recorded? Also, state the nature of the account:
  1. Cash.
  2. Bank Overdraft.
  3. Outstanding Salary paid.
  4. Outstanding Rent.
  5. Prepaid Insurance.
  6. Mohan, Proprietor of the business
✓

Answer

S.No
Name of Accounts
Consequence of decrease
Modern Approach
Traditional Approach
i
Cash
Credit
Assets
Real Account
ii
Bank Overdraft
Debit
Liability
Personal Account
iii
Outstanding Salary Paid
Debit
Liability
Personal Account
iv
Outstanding Rent
Debit
Liability
Personal Account
v
Prepaid Insurance
Credit
Asset
Personal Account
vi
Mohan, proprietor of the business
Debit
Capital
Real Account

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