Question

On which side will the increase in the following accounts be recorded? Also, state the nature of the account:

(i) Furniture A/c	(ii) Mohan (proprietor)
(iii) Salary A/c	(iv) Purchases A/c
(v) Sales A/c	(vi) Interest Paid A/c
(vii) Sohan (Creditor)	(viii) Ram (Debtor)

Answer 1

Name of Accounts		Consequence of increase	Modern Approach	Traditional Approach
(i)	Furniture	Debit	Assets	Real Account
(ii)	Mohan (Proprietor)	Credit	Capital	Personal Account
(iii)	Salary	Debit	Expense	Nominal Account
(iv)	Purchases	Debit	Expense	Nominal Account
(v)	Sales	Credit	Revenue	Nominal Account
(vi)	Interest Paid	Debit	Expense	Nominal Account
(vii)	Sohan (Creditor)	Credit	Liabilities	Personal Account
(viii)	Ram (Debtor)	Debit	Assets	Personal Account