.
, Rules of Debit and Credit
1. Personal Accounts:
○ Rule: Debit the receiver, Credit the giver.
○ Example: If cash is paid to a creditor:
■ Debit: Creditor's Account
■ Credit: Cash Account
2. Real Accounts:
○ Rule: Debit what comes in, Credit what goes out.
○ Example: If furniture is purchased for cash:
■ Debit: Furniture Account
■ Credit: Cash Account
3. Nominal Accounts:
○ Rule: Debit all expenses and losses, Credit all incomes and gains.
○ Example: If rent is paid:
■ Debit: Rent Account
■ Credit: Cash Account
, Rules of Debit and Credit
1. Personal Accounts:
○ Rule: Debit the receiver, Credit the giver.
○ Example: If cash is paid to a creditor:
■ Debit: Creditor's Account
■ Credit: Cash Account
2. Real Accounts:
○ Rule: Debit what comes in, Credit what goes out.
○ Example: If furniture is purchased for cash:
■ Debit: Furniture Account
■ Credit: Cash Account
3. Nominal Accounts:
○ Rule: Debit all expenses and losses, Credit all incomes and gains.
○ Example: If rent is paid:
■ Debit: Rent Account
■ Credit: Cash Account
