Classification of accounts and rules of debit and credit

Types of Account

Personal AccountsAccounts related to any person of firm.
Example: Accounts for honor Lander suppliers
and customer etc.
Real AccountsAccounts of Assets and liability
such as cash building plant and machinery
Nominal AccountsAccount related to expense and income
such as sale purchase salaries rent discount allowed
and discount received

Three golden rules of accounting

Personal Accounts :-Debit – the receiver Credit the give
Credit- the giver
Real Accounts :-Debit – What comes in
Credit – but goes out
Normal Accounts Debit – all expense and losses
Credit- what goes out


# Ramesh started Business with cash

Cash                               Dr.
Capital                            Cr.

# Paid into bank

Bank                              Dr.
Cash                              Cr.

# Bought Goods for Cash

Purchase                        Dr.
Cash                              Cr.

# Drew Cash From Bank For Office

Cash                              Dr.
Bank                              Cr.

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