1. Debit the Receiver, Credit the Giver.
Ex. When a person gives something to other any person or organisations, it becomes an inflow and therefore the person must be Credited to the organisation's or person's account.
2. Debit what comes in. Credit what goes out.
Ex. Its only refers to Real Account. Its included Land, Machinery, Building and all Tangible Assets. If we purchase Land or add in to our books so Land will be Debited in our Books of Accounts or if we sale it to others so it will be Credited.
3. Debit all the Expenses and losses, Credit all the Income and Gains.
Ex. Its only refers to Nominal Account. If we have profit from our businesses and other sources so this profit will be show in Credit site of Profit and loss account. And if we have losses and expenses from our businesses so it will be show in Debit site of profit and loss account.
The Graphically shows the Golden Rules with their linked Accounts.
