By: Snehal A.
Types of Accounts & their Golden Rules of Accounting
Real Account
Personal
Account
Nominal
Account
1. General Ledger Account
2. Transactions relating to
1. General Ledger Account
2. Transactions relating to
1. General Ledger Account
2. Transactions relating to ALL
ASSETS & LIABILITIES
3. Carried forward to next
year, not closed at end of
FY
4. Appears in the SOFP
5. Usually – DEBIT BALANCE
PERSONS
3. Appears in the SOFP
BUSINESS INCOMES,
EXPENSES, PROFITS &
LOSSES
3. Balances set to zero at end of
FY
DEBIT WHAT COMES IN,
DEBIT THE RECEIVER,
DEBIT ALL EXPENSES / LOSSES,
CREDIT WHAT GOES OUT
CREDIT THE GIVER
CREDIT ALL INCOMES / GAINS