The first rule: Debit what comes in and credit what goes out
The second golden rule of accounting applies to personal accounts. When a natural or legal person pays to our company, it becomes an inflow. As per the second golden rule of accounting, when the business receives something, then the account must be debited. On the other hand, when the business gives something then the account must be credited.
The second rule: Credit the giver and debit the receiver
The second golden rule of accounting applies to personal accounts. When a natural or legal person pays to our company, it becomes an inflow. As per the second golden rule of accounting, when the business receives something, then the account must be debited. On the other hand, when the business gives something then the account must be credited.
Third rule: Debit all expenses and losses, credit all incomes and gains
The second golden rule of accounting applies to personal accounts. When a natural or legal person pays to our company, it becomes an inflow. As per the second golden rule of accounting, when the business receives something, then the account must be debited. On the other hand, when the business gives something then the account must be credited.