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.”