When recording financial transactions using double-entry bookkeeping, it is important to understand the concept of debits and credits. Debits and credits are used to record the flow of assets, liabilities, and equity in a business. In this case, the statement "debit the receiver and credit the giver" is correct for personal accounts.

Personal Accounts:
Personal accounts are accounts that represent individuals or entities with whom the business has a direct relationship. These accounts could include accounts receivable, accounts payable, or capital accounts. When a business receives money from a person or entity, it is considered a debit to the receiver and a credit to the giver.

Explanation:
Debit the receiver and credit the giver means that when money is received from a person or entity, it is recorded as a debit in the receiver's account and a credit in the giver's account. This follows the fundamental accounting equation, which states that assets = liabilities + equity.

- Debit the receiver: This means that the receiver's account is increased. For example, if a business receives payment from a customer, the accounts receivable account is debited. This reflects an increase in the amount owed to the business by the customer.
- Credit the giver: This means that the giver's account is decreased. Using the same example, the customer's account would be credited, reflecting a decrease in the amount owed by the customer.

This method of recording transactions ensures that the accounting equation remains in balance. The total debits must always equal the total credits in a transaction.

Example:
Let's say a business receives a payment of $500 from a customer. The journal entry to record this transaction would be as follows:

- Debit Accounts Receivable: $500 (increase in the receiver's account)
- Credit Cash: $500 (decrease in the giver's account)

This entry reflects the fact that the business has received $500 from the customer, increasing the amount owed to the business and decreasing the customer's available cash.

Conclusion:
In summary, "debit the receiver and credit the giver" is the correct rule to follow when recording transactions in personal accounts. It ensures that the accounting equation remains balanced and accurately reflects the flow of assets, liabilities, and equity in the business.