3 golden rules of accounting

3 Golden Rules Of Accounting.

Here is a brief and complete summary of Debit - Credit rules:

(1) Debit: which comes in & Credit: which goes out

(2) Debit: The receiver & Credit: The giver

(3)Debit: expenses/ assets & Credit: income/liabilities

In other words,

(1) Debit the receiver; and Credit the giver

(2) Debit what comes in; and Credit what goes out

(3) Debit all expenses and losses; Credit all incomes and gains.