CSS/pms Accountancy

Redeemable preference shares are considered as long term debt.

Bonus shares capitalise the equity reserves.

Right shares can't be issued at discounted price as compared to nominal/face/par value.

Bonus share can't be issued from revaluation surplus.

Dividends can't be paid out of revaluation surplus.

The Only one Rule of Dr and Dr..

The account which receives the value is Debited ( Dr.) and the account which transfers value is Credited (Cr.)

Examples

1) Paid $5000 into a Bank Account.

Here Bank Account received the value so Bank is debited and Cash Account transferred the value so Cash Account is Credited.

Bak A/C. 5000
Cash A/C. 5000

2) Received $ 750 as a dividend into bank account

Here Bank Account received the value so Bank is debited and Dividend Account Transferred the Value so Dividend is Credited.

Bank A/C. 750
Dividend A/C. 750

3) Paid Cash to Supplier Lilli $890

Here the Lilli account is receiving the so-so Lilli is Debited and Cash Account is transferring the value, so Cash Account is Credited.

Lilli A/C. 890
Cash A/C. 890

( It's the concept behind Dr and Cr. Only transferring of value)

If I'm wrong, Rectify me..

Following are the temporary accounts in Accounting.

1) Expenses
2) Revenues
3) Gains $ Losses
4) Income Summary Accounts

Following are the permanent accounts in Accounting.

1) Assets
2) Liabilities
3) Capital/Equity

Which accounts are known as permanent accounts?