Question

"Debit is what comes in and Credit what goes out" is the rule for _____________.

• A. Real A/c
• B. Personal A/c
• C. Nominal A/c
• D. None of these

Answer 1

The correct option is A Real A/c

Account are classified in to three categories i.e. Personal Account, Real Account and Nominal Account. For every account there is rule. These are called golden rule of accountancy.

Rule for personal Account is:

Debit - The Receiver

Credit - The Giver

Rule for real account is:

Debit - what comes in

Credit - what goes out

Rule for Nominal Account is:

All expenses and losses - Debit

All income and gains - Credit