The system record of a transaction in the journal book is called journal entry, the process of passing journal entry is called journalising.The rules are also known as rules of debit and credit.

1. Personal Account:It is the account of a person or organization or debtor or creditor. It is the record of an individual or organization. Under it, the person receiving benefit is debited and the person giving benefit is credited. The rule of journalizing in personal account is as follows:

  • Debit the receiver
  • Credit the giver

2. Real Account:It is an impersonal account. It is the account of a real thing or property. It is the record of assets of the business. Under it, asset coming into business through its purchase is debited and the asset going out of the business through its sale is credited. The rule of journalizing in real account is as follow:

  • Debit what comes in
  • Credit what goes out

3. Nominal account: It is another impersonal account. It is the account of expenses, loss, income and profit. It has no any physical shape. It does not exist in the business in real form. It appears only in the books. It is the record of financial sacrifice against the service received and the record of financial benefit against the service rendered. The rule of journalizing in nominal account is as follows:

  • Debit all expenses and losses
  • Credit all incomes and profits
cash a/c 5000000 to capital a/c 5000000