Receipt to Receiving Inspection Dr Receiving Inspection Account (Receiving options) Cr Expense AP Accrual Account(Purchasing options) Delivery from Receiving

Inspection to Expense Destination Dr PO charge Account(PO Distributions) Cr Receiving Inspection Account Net Effect is nothing but Dr PO Charge Account Cr Expense AP Accrual Account Invoice Dr Expense Account Cr Liability Account Payment Dr Liability Account Cr Cash/Cash Clearing Account(when cash management is used) Prepayment Dr Prepayment Account Cr Liability Account Prepayment Payment Dr Liability Account Cr Cash Account Prepayment Application Dr Liability Account Cr Prepayment Account Future dated Payment Dr Liability Account Cr Future dated payment Account Future dated payment maturity Dr Future dated payment Account Cr Cash/Cash clearing Account

Real Accounts :Debit what comes in All tangible and intangible assets and liabilities. Credit what goes out Eg. Cash, Plant, Machinary, Loans taken(excluding personal accounts) Personal Accounts : Debit the Receiver All assets and liabilities which are of personal nature Credit the Giver Debtors,Creditors,Capital,Drawings Nominal Accounts : Debit all expenses and losses All Expenses and losses, all Incomes and gains Credit incomes and gains Eg Rent,loss on sale of assets, Fees received

Assets = Liabilities + Equity