3 magic rules of accounts

3 magic rules of accounts

To understand account there 3 magic rules or Simple steps to understand accounts. lets  know about theme :-

           1)      Real Account:-   

Debit is what comes in

Credit what goes out    

 

2                2)      Nominal Account:-

Debit all losses and expenditures

Credit all profit s and earnings (incomes)

3                3)      Personal account:-

Debit is receiver

Credit the giver