Rule of Debit and Credit?

Debits and credits are an integral part of the accounting system. They are the method used to record business transactions, and keep track of assets and liabilities. Anything that has a monetary value is recorded as a debit or credit, depending on the transaction taking place. The concept of debits and credits may seem foreign, but the average person uses the concept behind the terms on a daily basis. In accounting, debits or credits are abbreviated as DR and CR respectively.

In Personal accounts:Debit the receiver,Credit the giver

In Real accounts or asset accounts:Debit what comes in,Credit what goes out

In Nominal accounts:Debit all expenses & losses,Credit all incomes & Gains

identify the item and transaction nature

03 accounts Personel/real/Nominal

Personel Dr-REceiver/Cr-Giver

Real- Dr-Comes in/Cr-goes out

Nominal-Dr-Exp or loss Cr-Income

DEBIT WHAT COMES IN  AND CREDIT WHXT GOES OUT  UNDER DOUBLE ENTRY SYSTEM OF ACCOUNTING