The Golden rules of Accounting are:

01. Real Account,  02. Nominal Account & 03. Personal Account

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Personal Accounts

These types of account are generally related to some person and organisations.e.g. Debtor, Creditor, Capital, Bankers etc.

For Personal A/c the Rule is

Debit the Receiver

Credit the Giver

 

Cheque issued to Mr. Sandip Rs 10,000

By Sandip A/c                   Dr.  10,000

To Bank A/c                                  Cr. 10,000

Here Sandip is receiver

 

Ram paid to Shyam Rs. 25000

By Shyam A/c                  Dr.  25000      

To Ram A/c                                Cr. 25000

Here Ram is giver        

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Real Accounts

These types of account are generally realated to things that have an existence and can be seen with our eyes. Ex. Goods, Land and Building

For Real A/c the Rule is

Debit what comes in

Credit what goes out

 

Purchase cotton worth Rs.12000

Cotton A/c                   Dr.  10000

To Cash                                      Cr. 10000

Here cotton is coming in our business

 

Sold Chair worth Rs.25000

Cash A/c                      Dr.  25000

To Chair                                         Cr.25000

Here chair are going out business.

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Nominal Accounts

These types of account are related to things those have existence but can’t be seen with our eyes. Ex. Payment, Profit, Receipts etc.

For Nominal A/c the Rule is

Debit all the expenses/losses

Credit all the incomes, gains

 

Paid salaries Rs.10000

Salaries A/c                  Dr.  10000

To  Cash                                      Cr.  10000

Here, Salary is a nominal A/c, so Dr. the expenses
Cash is a real A/c, so Cr. what goes out

Received Commission Rs.15000/- in Bank

Bank A/c                      Dr.  15000

To Commission Received             Cr. 15000

Here, Commission is a nominal A/c, so Cr. the incomes
Bank is Personal Accounts, so Debit the Receiver