Golden rules of Accounting

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In Accountancy, there are 3 types of Accounts.They are

• Personal Account
• Real Account
• Nominal Account

All transactions taking place in business are classified into above 3 three types of Accounts. Transactions falling under each type of account as to follow "golden rules of Accounting" to record transactions in the books of Accounts,which is to be debited and which is to be credited.

Following are the golden rules of Accounting:-
Personal Account:-
Debit the receiver
Credit the giver

Real Account:-
Debit what comes in
Credit what goes out

Nominal Account:-
Debit all expenses and losses
Credit all incomes and gains 

Golden rules of Accounting examples