Classification of accounts and rules of debit and credit

Types of Account

Personal Accounts	Accounts related to any person of firm. Example: Accounts for honor Lander suppliers and customer etc.
Real Accounts	Accounts of Assets and liability such as cash building plant and machinery
Nominal Accounts	Account related to expense and income such as sale purchase salaries rent discount allowed and discount received

Three golden rules of accounting

Personal Accounts :-	Debit – the receiver Credit the give Credit- the giver
Real Accounts :-	Debit – What comes in Credit – but goes out
Normal Accounts	Debit – all expense and losses Credit- what goes out

Entry

# Ramesh started Business with cash

Cash                               Dr.
Capital                            Cr.

# Paid into bank

Bank                              Dr.
Cash                              Cr.

# Bought Goods for Cash

Purchase                        Dr.
Cash                              Cr.

# Drew Cash From Bank For Office

Cash                              Dr.
Bank                              Cr.