Introduction
Are you confused about which account to debit and which to credit? 🤔
Don’t worry — the Golden Rules of Accounting will make it very simple.
In this article, you’ll learn all three rules with easy examples — perfect for CA Foundation students.
📘 What are Golden Rules of Accounting?
Golden rules are basic principles that help you decide:
👉 Which account to Debit
👉 Which account to Credit
These rules are based on types of accounts.
📊 Types of Accounts
There are 3 types of accounts:
- Personal Account
- Real Account
- Nominal Account
Each has its own rule.
🔹 1. Personal Account
👉 Rule: Debit the Receiver, Credit the Giver
💡 Example:
You pay ₹1,000 to Ramesh
- Ramesh receives → Debit Ramesh
- Cash goes out → Credit Cash
🔹 2. Real Account
👉 Rule: Debit what comes in, Credit what goes out
💡 Example:
You buy furniture
- Furniture comes in → Debit Furniture
- Cash goes out → Credit Cash
🔹 3. Nominal Account
👉 Rule: Debit all expenses and losses, Credit all incomes and gains
💡 Example:
You pay salary
- Salary is expense → Debit Salary
If you receive interest
- Interest is income → Credit Interest
🎯 Exam Tip
👉 This topic is very important for journal entries.
👉 Questions are often asked for 4–6 marks.
💡 Remember:
- Personal → Receiver/Giver
- Real → In/Out
- Nominal → Expense/Income
📚 Quick Revision
Personal → Debit receiver, Credit giver
Real → Debit comes in, Credit goes out
Nominal → Debit expenses, Credit incomes
🎥 Learn in 60 Seconds
👉 Watch the quick explanation on YouTube: (Will Update link soon)
📢 Final Words
Once you understand these rules, journal entries become very easy.
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📢 Conclusion
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