When we pass a journal entry, there are two parts to it. One is debit and another is credit. There may be one or more accounts to debit as well as credit in any journal entry. For every debit, there should be corresponding credit entry and vice versa.
Example:
Received cash for goods sold for Rs. 1000
step 1- recognise the accounts involved
here accounts involved are - cash and sales
step 2 - sort these accounts as per their types
here cash account is a real account and sales account is a nominal account
step 3 - now based on journal entry rules and account types, assign the debit and credit effect
Here cash account being a real account, it will need to be debited (rule for real accounts - debit what comes in and credit what goes out).
Sales account is a nominal account so it will be credited (rule for a nominal account - debit if expenses/losses incurred and credit if income/gain earned).
So stay tuned for forthcoming lessons.. and do let me know if you like this one as well. Thanks.