Golden Rules of Accounting 

Rule 1: Personal Accounts

The golden rule for recording transactions in personal accounts is 'Debit the receiver and credit the giver'. As per rule, the person or person's account who receives something from the business is debited and the person or account who gives something to the business is credited.

Rule 2: Real Accounts

The golden rule for recording transactions in real accounts is 'Debit what comes in and credit what goes out'. As per this rule, whenever the business receives any property then it will be debited and when it goes, i.e., sold or anything else, it will be credited.

Rule 3: Nominal Accounts

The golden rule for recording transactions in nominal accounts is 'Debit the expense and losses and credit the incomes and gains'. As per this rule, all those activities of the business which cause an outflow of the cash or cash equivalent, i.e., expenses or losses, are debited while all those activities which cause an inflow of the cash or cash equivalent, i.e., incomes or gains, are credited.