As we know the golden rule of accountancy includes three accounts, which are used to make journal entries.
1. Personal A/C
- Debit the receiver
- credit the giver
2. Real A/C
- Debit what comes in
- Credit what goes out
3. Nominal A/C
- Debit the losses and expense
- Credit the gains and income
The crux of all for journal entries.
- Debit the account when anything come ( like Person, expense etc.)
- Credit the account for what goes from business (like cash, stock)