Every system having some rules

Every system having some rules so in order to understand the Double Entry system we must follows the rule for three kinds of the accounts Personal account, Real Account and Nominal Account. 

Personal Account :These accounts record a business dealing with the persons and firms. The Person receiving something is given debit and the person giving something  is given credit.For Example John sell the goods to the Susan on the credit then in this case john will be passed entry  passes as John Debit the  Susan Account and Credit the Goods Account with the amount of the value of the goods and in the books of Susan will Debit the goods Account  and credit the Johan Account because She gets the goods from John on credit. So Rule of Personal account is Debit the Receiver and credit the giver. 

Real Account :  Real Account are the accounts of assets. Assets entering the busniess is given debit and Assets are leaving the business is given credit. more clear with the Exmple when we purchase any assets then Assets comes in the business so it is debited and the Cash goses out in liue of the assets is Credited on the other hand it is wise versa when we sold the any assets So Rule of Real account is Debit what come in and credit what goes out 

Nominal Account :Nominal Accounts are deals with the all the expenses and income of a business are recorded under the Nominal Accounts for example when we pay any charges for the running of the business then in this case we debit the Expenses and Credit the Cash or Bank  because the Cash or bank is going out ( Rule of Real Account is apply Credit what goes out (Cash is Assets of the business) and Vise-verse . 

So Rule of Nominal account is Debit all the expenses or losses and credit all the incomes or gains