State the Golden Rules of Debit and Credit under the Traditional Approach, giving one example for each rule.

Exercises · Q8

Q. State the Golden Rules of Debit and Credit under the Traditional Approach, giving one example for each rule.

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Type of Account	Rule	Example
Personal Account	Debit the receiver, Credit the giver	Cash paid to Suresh ₹5,000 — Suresh RECEIVES the cash, so Debit Suresh's A/c
Real Account	Debit what comes in, Credit what goes out	Furniture purchased for cash ₹10,000 — furniture COMES IN, so Debit Furniture A/c (Cash A/c is credited, since cash goes out)
Nominal Account	Debit all expenses and losses, Credit all incomes and gains	Rent paid ₹2,000 — rent is an EXPENSE, so Debit Rent A/c; Commission received ₹1,000 — commission is an INCOME, so Credit Commission Received A/c

Q.State the Golden Rules of Debit and Credit under the Traditional Approach, giving one example for each rule.