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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
On which side will the decrease in the following accounts be recorded? Also, state the nature of the account:
(i) Cash (ii) Bank Overdraft (iii) Outstanding Salary paid (iv) Outstanding Rent (v) Prepaid Insurance (vi) Mohan, Proprietor of the business
Answer:
| 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 | Real Account |
| (vi) | Mohan, Proprietor of the business | Debit | Capital | Personal Account |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 11 Chapter 6 Q.5 - Side of Decrease in Accounts with Modern and Traditional Approach", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 6 - Accounting Procedures - Rules of Debit and Credit.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 11 Chapter 6 Q.5 - Side of Decrease in Accounts with Modern and Traditional Approach" instantly.