Golden Rules of Accounting:
1 Debit The Receiver, Credit The Giver
2 Debit What Comes In, Credit What Goes Out
3 Debit All Expenses And Losses, Credit All Incomes And Gains
Different types of Accounts:
❖ Personal: Personal Accounts are the ones that are related with individuals, companies, firms, group of associations etc. Eg Veer’s A/c, Kapoor Pvt Ltd, Prepaid Expenses A/c etc.
❖ Real: Real Accounts are the ones that are related with properties, assets or possessions. Real Accounts can be of two types: Tangible Real Accounts and Intangible Real accounts. Eg Machinery A/c, trademarks, goodwill etc.
❖ Nominal: Nominal Accounts relate to income, expenses, losses or gains. These include Wages A/c, Salary A/c, Rent A/c etc.
