This section Covers..
01. Golden rule of accounting
02. Rules of Debit and Credit

Golden Rules of Accounting

Real Accounts	Debit What comes in
	Credit What goes out
Nominal Accounts (Profit & Loss a/c)	Debit all expenses and loses
	Credit all incomes and revenues
Personal Accounts	Debit the giver
	credit the receiver

 

Rules of Debit and Credit

	Type of Account	To Debit the Account	To Credit the Account
1.	Personal	When the person whose in whose name the account is kept is in debt to us	When the person in whose name the account is kept is in credit with us
2.	Real	When the account received money/the equivalent	When the account gives us money/the equivalent
3.	Profit and Loss	Any account that ends with the words 'Expense Accounts'.	Any account that ends with the words 'Revenue Account'

Back to Accountancy Section