Three Golden Rules — Double Entry System — KSLU Ethics Notes

Three Golden Rules — Double Entry System

flowchart TD
    A["Three Types of Accounts"] --> P["Personal Account"]
    A --> R["Real Account"]
    A --> N["Nominal Account"]
    P --> P1["Debit the Receiver - Credit the Giver"]
    R --> R1["Debit what comes In - Credit what goes Out"]
    N --> N1["Debit Expenses and Losses - Credit Incomes and Gains"]

Who invented it? Italian mathematician Luca Pacioli (1494) — called the “Father of Accounting.”