Reference: The 3 Traditional Golden Rules
| Account Category | What It Represents | Rule for Debit | Rule for Credit | Practical Examples |
|---|---|---|---|---|
| Personal Account | Persons, firms, companies, banks, capital, drawings | Debit the Receiver | Credit the Giver | Customers, Suppliers, Bank, Capital, Loans |
| Real Account | Tangible and intangible business assets and properties | Debit what comes in | Credit what goes out | Cash, Furniture, Machinery, Computer, Land |
| Nominal Account | Expenses, losses, revenues, gains, and incomes | Debit all expenses & losses | Credit all incomes & gains | Rent, Salaries, Commission, Interest, Sales, Purchases |
💡 Pro Tip for Accountants:
Every single transaction affects at least two accounts. Always verify that Total Debits strictly equal Total Credits (\(\Sigma\text{Debits} = \Sigma\text{Credits}\)). In TallyPrime, an unbalanced entry cannot be saved!