i) If a transaction has the effect of decreasing an asset, the decrease will be recorded as credit because all the assets have debit balance. So if asset decreases, it is credited.
(ii) For example, when an asset is decreased because of depreciation, in that case asset account is credited

Cash paid into bank

Furniture sold

(i) Cheque is a negotiable instrument. Cheque book is issued by bank to its customers to use it for making payment.
(ii) By issue of cheque, a bank is directed to pay a specific amount of money from a person's account to the person in whose favour the cheque has been issued.
(iii) Each cheque book has record slips for entering the details of cheques issued.

(i) When Cash cheque is deposited in bank, a form is to be filled by a customer and submitted to the banker along with Cash cheque. This is called as pay-in-slip or deposit slip.
(ii) The main part of this will be retained by the bank and the counterfoil duly stamped and signed by the banker is returned to the customer.

Calculation of Capital:

The total amount of debts payable by a business to the outsiders are called external liabilities. (e.g.) creditors, bills payable etc

(i) A debit note is prepared by the buyer and it contains the date of the goods returned, name of the supplier, details of the goods returned and reasons for returning the goods.
(ii) Each debit note is serially numbered.
(iii) A duplicate copy or counterfoil of the debit note is retained by the buyer.

'Debit all expenses and losses and Credit all incomes and gains'. For nominal accounts, the rule is debit all expenses and losses and credit all incomes and gains

Personal accounts can be classified into natural, artificial and representative personal accounts

(i) Accounting equation is a mathematical expression which shows that the total of assets is equal to the total of liabilities and capital.
(ii) This is based on the dual aspect concept of accounting.
(iii) This means that total claims of outsiders and the proprietor will always be equal to the total of assets of business enterprise.
Assets = Liabilities + Capital + Revenues - Expenses

(i) Source documents are the authentic financial evidence of transactions. These documents show the nature of transaction, the date, the amount and the parties involved.
(ii) Source documents include cash receipt, invoice, debit note, credit note, pay-in-slip, salary bills, wage bills, counterfoils of cheques and any other form of written documentary proof.