What are the three Golden rules of Accounting ?



0
Briefly explain three Golden rules of Accounting with proper illustration each.

22 Answer(s)


1

1. debits = credits; and, 2. Assets = liabilities + owners equity (The accounting equation).

1

3 GOLDEN RULES

PERSONAL - DEBIT THE RECEIVER CREDIT THE GIVER
eg - When business receives any sum it is debited and vice versa

REAL - DEBIT WHAT COMES IN CREDIT WHAT GOES OUT
eg - When you buy a table - table comes in to business and cash goes out from your business

NOMINAL - DEBIT ALL EXPENSES AND LOSSES AND CREDIT ALL INCOMES AND GAINS
eg - When you pay Conveyance fee it is debited or when you receive any fee it is credited

0


3 GOLDEN RULES

PERSONAL - DEBIT THE RECEIVER CREDIT THE GIVER
eg - When business receives any sum it is debited and vice versa

REAL - DEBIT WHAT COMES IN CREDIT WHAT GOES OUT
eg - When you buy a table - table comes in to business and cash goes out from your business

NOMINAL - DEBIT ALL EXPENSES AND LOSSES AND CREDIT ALL INCOMES AND GAINS
eg - When you pay Conveyance fee it is debited or when you receive any fee it is credited

0

A.Real Accounts:- 1.Debit what comes in 2.Credit what goes out.Example:accounts dealing with cash,any assets etc. B.Personal Accounts:- 1.Debit the receiver. 2.Credit the giver. Example:account dealing with an individual,companies, institutions etc(Bank,Ram,SRMB srijan ltd,Delhi publi school etc). C.Nominal Accounts:- 1.Debit all expenses & losses. 2.Credit all incomes & gains(revenues). Example:accouts dealing with rent,salary, interest,discount etc.

0

PERSONAL - DEBIT THE RECEIVER CREDIT THE
GIVER
eg - When business receives any sum it is debited
and vice versa
REAL - DEBIT WHAT COMES IN CREDIT WHAT
GOES OUT
eg - When you buy a table - table comes in to
business and cash goes out from your business
NOMINAL - DEBIT ALL EXPENSES AND LOSSES
AND CREDIT ALL INCOMES AND GAINS
eg - When you pay Conveyance fee it is debited
or when you receive any fee it is credited

0

real account-1.debit what comes in
2.credit what goes out

personal account-1.debit the receiver
2.credit the giver

nominal account-1.debit all expenses and losses
2.credit all income and gains..
thank you

0

PERSONAL A/C = DEBIT THE RECEIVER CREDIT THE GIVER,

REAL A/C = DEBIT WHAT COMES IN CREDIT WHAT GOES OUT,

NOMINAL A/C = DEBIT ALL EXPANSES AND LOSSES, CREDIT ALL INCOMES AND GAINS.

0

PERSONAL A/C = DEBIT THE RECEIVER CREDIT THE GIVER,

REAL A/C = DEBIT WHAT COMES IN CREDIT WHAT GOES OUT,

NOMINAL A/C = DEBIT ALL EXPANSES AND LOSSES, CREDIT ALL INCOMES AND GAINS.

0

PERSONAL A/C = DEBIT THE RECEIVER CREDIT THE GIVER,

REAL A/C = DEBIT WHAT COMES IN CREDIT WHAT GOES OUT,

NOMINAL A/C = DEBIT ALL EXPANSES AND LOSSES, CREDIT ALL INCOMES AND GAINS.

0

null

0

Personal accounts --> Debit the benefit receiver, credit the benefit giver

Real accounts --> Debit what comes in, credit what goes out

Nominal Accounts --> Debit all expenses and losses, credit all incomes and gains

0

debit all expenses or loss and credit all income gain or profit

0

Debit the receiver and credit the giver Personal Account
Debit what comes in credit what goes out Real Account
Debit all expenses or loss Credit all income gain or profit Nominal Account.

0

Golden rules for account. .


0

1. Debit the receiver Credit the Giver
2. Debit What Comes In , Credit what goes out
3. Debit all expenses and losses, Credit all Income and Gains

0

 1.Debit the receiver and credit the Giver

2.  Debit What Comes in, Credit What goes out

3   Debit All expenses and losses, Credit All incom and gains


0

DAMODAR GOWDA

 Debit=all expenses and loses

Credit=all incomes and profits


0

              Debit                                                                                  Credit

1)     Receiver                                                                            Giver

2)      Comes in                                                                          Goes out

3)      Expenses and losses                                                        Incomes and Profits                   


0

https://youtu.be/xBMymef4MhA 

Watch this video to learn golden rules of accounting in details.


0

REAL :-  DEBIT WHAT COMES IN   CREDIT WHAT GOES OUT

PERSSONAL "- DEBIT THE RECEIVER CREDT THE GIVER

NOMINAL :- DEBIT ALL EXPENSES AND LOSSES  CREDIT ALL INCOME AND GAINS


0

1) Real Account - includes tangible and intangible assets like machinery land,ect.

Rule - Debit what comes in , Credit what goes out.

2) Personal Account - Includes assets and liabilities representing a 'Person' like bank,debtors,creditors,ect.

Rule - Debit the reciever , Credit the giver.

3) Nominal Account - are accounts of incomes and expenses.

Rule - Debit all expenses and losses , Credit all incomes and gains.


0

For better understaning of Golden Rules of Accounting you should first know the capital and revenue nature. 3 Golden rules of accounting are for posting the transaction with proper classification of debit and credit items.

 http://izzihub.com/golden-rules-of-accounting

Your Answer

Click on this code-snippet-icon icon to add code snippet.

Upload Files (Maximum image file size - 1.5 MB, other file size - 10 MB, total size - not more than 50 MB)

Email
Password