Golden Rules of Accounting
The universal principles that dictate every Debit and Credit entry in the world of double-entry bookkeeping.
Personal Account
Related to Persons
Debit (Dr.)
The Receiver
Credit (Cr.)
The Giver
Real Account
Related to Assets
Debit (Dr.)
What comes in
Credit (Cr.)
What goes out
Nominal Account
Expenses & Income
Debit (Dr.)
Expenses & Losses
Credit (Cr.)
Income & Gains
Memorizing these rules is essential. For every transaction, you must first classify the account, then apply the corresponding Golden Rule to determine which account is debited and which is credited.