explain in brief the golden rules of accounts or acounting ?


2 Answer(s)


Type Debit Credit
Personal The receiver The giver
Real What comes in What goes out
Nominal All expenses and losses All income and gains (profits)

THE THREE PRINCIPLE GOLDEN RULES OF ACCOUNTING ARE:

1.FOR PERSONAL ACCOUNTS--->DEBIT THE RECEIVER, CREDIT THE GIVER.

2.FOR REAL ACCOUNTS----------->DEBIT WHAT COMES IN, CREDIT WHAT GOES OUT.

3.FOR NOMINAL ACCOUNTS----->DEBIT ALL EXPENSES AND LOSSES, CREDIT ALL INCOMES AND GAINS.