1.Debit the receiver and credit the Giver
2. Debit What Comes in, Credit What goes out
3 Debit All expenses and losses, Credit All incom and gains
Debit=all expenses and loses
Credit=all incomes and profits
1) Receiver Giver
2) Comes in Goes out
3) Expenses and losses Incomes and Profits
REAL :- DEBIT WHAT COMES IN CREDIT WHAT GOES OUT
PERSSONAL "- DEBIT THE RECEIVER CREDT THE GIVER
NOMINAL :- DEBIT ALL EXPENSES AND LOSSES CREDIT ALL INCOME AND GAINS
1) Real Account - includes tangible and intangible assets like machinery land,ect.
Rule - Debit what comes in , Credit what goes out.
2) Personal Account - Includes assets and liabilities representing a 'Person' like bank,debtors,creditors,ect.
Rule - Debit the reciever , Credit the giver.
3) Nominal Account - are accounts of incomes and expenses.
Rule - Debit all expenses and losses , Credit all incomes and gains.
For better understaning of Golden Rules of Accounting you should first know the capital and revenue nature. 3 Golden rules of accounting are for posting the transaction with proper classification of debit and credit items.