There are 3 golden rules of accounting which are also known as debit and credit rules of accounting. These 3 rules are the foundation principles of accounting which are of great help when it comes to posting in journal and ledger.
- Rule number 1 – Debit the receiver and Credit the giver (applicable for personal account)
- Rule number 2 – Debit what comes in and Credit what goes out (applicable for real account)
- Rule number 3 – Debit all expenses and losses and Credit all incomes and gains (applicable for nominal account)