Journal Entries cannot be recorded without some rules. The rules which are used to record a journal entry are called Golden rules of Accounting. It means debit the person who receives something from the business

1. The Golden Rules in
Accounting OR
Rules of Debit and
Credit
Presented by:
John Tirkey

2. Journal Entries cannot be recorded without some
rules. The rules which are used to record a
journal entry are called Golden rules of
Accounting.

3. 1. Personal account
2. Real account
3.Nominal account

4.  Examples of Personal Account :
 Capital account
 Mahajan and Sons Ltd account
 Ram’s account
Golden Rule of accounting in case of Personal
Account :
“Debit the Receiver Credit the Giver”

5. It means debit the person who receives something
from the business
Example – Cash paid to Ram
Here Ram’s account will be debited as Ram has
received cash from the business

6. It means Crediting the person who has given
something to the business.
Example – Cash received from Mahajan Ltd.
Here Mahajan’s Ltd. Account will be credited as
Mahajan Ltd has given cash into the business.

7. Examples of Real Account:
 Cash account
 Stock account
 Machinery account
 Furniture account
“Debit what comes In Credit what goes Out”

8.  It means Debiting the assets coming into the
business.
 Examples –Cash received from Ram
Here Cash Account will be debited as Cash is
coming into the business

9.  It means Crediting the assets going out from
the business.
 Example – Machinery sold to Ram
Here Machinery Account will be credited as
Machinery is going out from the business.

10. Examples of Nominal Account
 Salary account
 Interest Received account
 Loss on sale of asset account
“Debit all expenses and losses Credit all Income
and Gain”

11.  It means Debting all Expenses and Losses
incurring in the Business
Examples – Salary paid in cash
Here Salary Account will be debited as Business is
giving salary which is an expense

12.  It means Crediting all Income and Gains
earned by the Business.
 Example- Interest Received from Bank
Here Interest received Account will be credited as
Business is receiving cash from bank which is
an Income.

13. Thankyou