What is the cardinal rule of the double entry system?
Debit the increasing account and credit the decreasing account
Debit the receiving account and credit the giving account
Debit the asset account and credit the liability account
Debit the revenue account and credit the expenditure account
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Discussions (18)
The rule States ;Debit the receiver, credit the giver. That is what is received are recorded into the debit side of the cash book while transaction going out are recorded into the credit side of the cash book. Meanwhile we also have counter entries which goes to both sides of the cash book..
Guyz,no controversy over this,I av neva heard about d rules of double entry dat says :debit asset,credit liability: xo,plx don't misunderstand d principle dat says;debit d receiver and credit d giver.Option B is correct
One of the cardinal rule in acctn is to. Debit the receiver and credit the giver...the korrect anwser is B
Some pple re jst here to confuse neither to convince, da correct ansa is "debit da receiver nd credit da giver"
The answer z B.cardinal rule of double entry z d same as d rule of double entry.
The answer is B bcos in double entry account, is use for recording debit and credit transaction of receiver and giver
d ans is C. in double entry system we have 2 syd of recodn transactn, d debit nd d credit syd, wen u receive u record on d debit nd wen u give out u record on d credit syd.
Option B is definitely the answer, thos saying c pls dnt confuse yourself, asset and liabilities are both accounts of the balance sheet and note that in the balance sheet it's not visibly label whether dr or cr but common sense should tell you that the the left hand side of every account represent the debit side while the right hand side represent the credit side and the basic principles of account states that you debit any receiver or receiving account and credit the giver's or giving account.
D principle state that,
the reciever should be debited and the giver should be credited
in double entry alc we have debit and credit side, on the debit side is were transactions made by receiving are records while transaction made by giving is been record on the credit side
