Free game · Golden rules of accounts
Debit or credit? Play the golden rules
Ten quick account cards. Pick the type of account, then Debit or Credit. Every answer shows the golden rule and why it applies, and you can replay the ones you missed.
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Card 1 of 10
Transaction
Interest of ₹600 earned on investments but not yet received
Account
Interest on investments A/c
What type of account?
The three golden rules
Every account falls into one of three types. Each type has one rule for the debit side and one for the credit side.
| Account type | Debit (Dr) | Credit (Cr) |
|---|---|---|
| Personal people, firms, banks, capital and drawings | Debit the receiver | Credit the giver |
| Real things: cash, machinery, goodwill | Debit what comes in | Credit what goes out |
| Nominal expenses, losses, incomes, gains | Debit all expenses and losses | Credit all incomes and gains |
Modern rules, the same answers in one line
Modern rules sort each account by what it is. Find the kind, then check whether its balance is going up or down.
| Kind | Examples | Increase | Decrease |
|---|---|---|---|
| Asset | Cash, machinery, debtors | Debit | Credit |
| Expense | Rent, salary, purchases | Debit | Credit |
| Liability | Creditors, loans, bank overdraft | Credit | Debit |
| Capital | Owner’s capital (drawings reduce it) | Credit | Debit |
| Revenue | Sales, interest received, commission | Credit | Debit |
Common mistakes in the exam
- Drawings is a personal account, not nominal. The owner receives the goods, so drawings is debited. It reduces capital.
- Outstanding expenses, like outstanding salary, are personal liabilities, not nominal. Credit the outstanding salary account and debit the salary expense separately.
- Discount received is a gain and is credited. Discount allowed is a loss and is debited. Do not swap them.
- Capital is what the business owes the owner, so it is a liability for the business. It is credited, not debited.
Learn the chapter
- Kerala Plus One — Introduction to accounting
- CBSE Class 11 — Introduction to accounting
- Kerala Plus One — Recording of transactions I
- CBSE Class 11 — Recording of transactions I
- Kerala Plus One — Recording of transactions II
- CBSE Class 11 — Recording of transactions II
- Kerala Plus One — Theory base of accounting
- CBSE Class 11 — Theory base of accounting
Got a full transaction? Try the Journal Entry Finder.
A study game, not a substitute for your textbook. Check each rule against your teacher’s method, because exam questions sometimes use their own wording.
By the ACES team · Last checked 6 November 2026