What are the golden rules of accounting?

Debit the Receiver

Credit the Giver

Real Account – These are asset accounts that appear in the Balance Sheet. They are referred to as Real Account (or Permanent Accounts) as these are owned by businesses and the balances in these accounts at the end of an accounting period will be carried over to the next period. Ex: Cash Account, Land Account, Building Account etc.

Rules of Accounting:

Debit what comes in

Credit what goes out

Nominal Account – These are accounts of expenses and losses which a business incurs and income & gains which a business earn in the course of business. Ex: Rent Account, Interest Account.

Rules of Accounting:

Debit all expenses and losses

Credit all income and gains