Rule 1: Total asset= Total liab + owner's Equity
Rule 2: Debit: all exp & loss
Credit: all income & gain
Rule 3: Total of debit side = Total of credit side
1.personal account
debit the receiver
credit the giver
2.nominal account
all expence and loses debit
all incomes and gains credit
3.real account
what comes in debit
what goes out credit
There 3 basic rules in Accounting
1.Real Account
what comes in Dr
what goes out Cr
2.Personal Account
The Reciver Dr
Giver Cr
3.Nominal Account
All Expenses Dr
All incomes Cr
Personal A\C
Receiver a\c Dr
Giver a\c Cr
Nominal A\C
All expenses & loss a\c Dr
All income & gain a\c Cr
Real A|C
What comes in a\c Dr
What goes out a\c Cr
Basic rules in Accounting
Personal Account:
Debit Receiver of the benefit
Credit Giver of the benefit
Real Account:
Debit What comes in
Credit What goes out
Nominal Account:
Debit all expenses and losses
Credit all incomes and gains
Personal Accounts :All the personal A/c as ramesh A/c, raj
A/c are included . A person who takes debited and a person
who gives credited
Real Accounts: All the real A/c as fixed assets which is
real in nature are included inwhich whatever comes in
debited and watever goes out credited
Nominal A/c : In the nominal A/c all the Expenses & loss IS
debited and all the incomes and gains is credited
There are three basic rules in accounting
Real Account: what comes in--Dr
what goes out-----Cr
Personal Account:the receiver--Dr
the giver--------Cr
Nominal Account: All expenses and losses--Dr
All income and gains-------Cr
for personal account
debit to receiver
credit the giver
for real account
debit what comes in
credit what goes out
for nominal account
debit all exp/losses
credit income/gain
1)Capital=Assets-liabilities
2)Debit side should be equal to credit side
Debit all exp&loss and credit all incomes and gains
3)Increase in debit should not be equal to credit
three rules are
1. real a/c i.e (asset)
when one asset comes in it should be debited
when one asset goes out it should be credited
2.personal a/c i.e (individual a/c)
when one person or co.receives benefit it should debited
when one person or co.gives benefit it should be credited
3.nominal a/c
all the expenses&losses should be debited
all the incomes&gains should be credited
According to me whatever answer posted above is not correct
because, they have highlighted basic principals of
accounting and not rules of accounting.
total assests: Liab+Capital
Total Liab: Capital -Assests
Capital: Equity+liab(Borrowed Capital)
accounts are two types. namely
1.personal account
2.impersonal account: this account can be divided into two types
a.Real A/c
b.Nominal A/c
1.Personal A/c:
Debit the REciever
Credit the Giver
2.Real A/c
Debit what comes in
credit what goes out
3.Nominal A/c
Debit all expenses and losses
Credit all incomes and gains
These are called Golden principles.
Three types of rule:
1) Personal Account
"Debit the receiver
Credit the giver"
2) Real Account
"Debit what comes in
Credit what goes out"
3) Nominal Account
"Debit all expenses and losses
Credit all incomes and gains"
I learn this three rule of accounting
Personal A/c
Dr:-"Debit the receiver
cr:-credit the giver"
ex:-SBI,ICICI etc.
Real A/c
Dr:-"Debit what comes in"
cr:-"credit what goes out"
ex:-purchased goods from ram on credit basis
purchase a/c dr
To ram a/c
Nominal a/c
Dr:-"Debit all expenses and lossess
cr:-credit all incomes and gains"
Real A/C
Debit : What comes in
Credit :what goes out
Personal A/C
Debit : Receiver
Credit : Giver
Nominal A/C
Debit : All Expenses & Losess
Credit : All incones and gains
1.Personal a/c
debit the reciever
credit the giver
2.Real a/c
debit what comes in
credit what goes out
3.Nominal a/c
debit all expenses and losses
credit all incomes and gains
There are two kinds of accounts: 1. Personal Account, and
2. Impersonal Account
1. Personal A/C Dr. the Receiver, Cr. the giver
2. Impersonal account can be devided in to two groups: 1.
Nominal A/C, 2. Real A/C
2.1. Nominal A/C : All expenses and losses Dr., and all
income and gains Cr.
2.2. Real A/C: Dr. what goes out, Cr. what comes in
For these rules all the accounting transactions are divided
into three accounts: Real, Nominal and Personal. And the
rule says:
Real Account:
Debit what comes in
Credit what goes out
Personal Account:
Debit the reciever
Credit the giver
Nominal Account:
Debit all expenses and losses
Credit all incomes and gains
Personal account - Deals with the live persons eg.,Ram,Chris etc
Debit the Receiver
Credit the giver
Real Account - Deals with the cash
Dedit what comes in
Credit what goes out
Nominal Account - Deals with the Expenses & Incomes
Debit all the Expenses & Losses
Credit all the Incomes & Gains.
What is the entry for payment made to the distributor after
deducting TDS and adjusting the credit note raised by them.
For Ex: actual amount to pay rs.1000
TDS deducted rs.200
credit note of rs.500