Question

Briefly state the rules of debiting and crediting accounts classified on the basis of Accounting equation.

Answer 1

There are mostly three types of accounting

REAL ACCOUNT

Debit what comes in

Credit what goes out


* PERSONAL ACCOUNT

Debit the receiver

Credit the giver.


* NOMINAL ACCOUNT

Debit all expences and losses

Credit all incomes and gains

Answer 2

ACCOUNTING GOLDEN RULES:

Personal A/C :

1) Debit the receiver of the benefit

2) Credit the giver of the benefit

Real A/C :

1) Debit what comes into the business

2) Credit what goes out of the business

Nominal A/C :

1) Debit all expenses and loses

2) Credit all incomes and gains