Question

Describe the rules of debit.

Answer 1

Rules of Debit are as follows:

• Personal Accounts: Debit the receiver 
  Example: If Ram pays ₹ 1000 to Mohan, Mohan’s account the receiver, will be debited.)
• Real Accounts: Debit what comes in
  Example: If a firm purchases furniture, the furniture account is debited because the asset comes in.
• Nominal Accounts: Debit all expenses and losses
  Example: When rent is paid, the rent account is debited because it is an expense.