Golden Rules of Accounting

qtq80 SEny0W Golden Rules of Accounting

What is Golden Rule of Accounting ?

Before understanding Golden rules of accounting Let us understand three types of accounts

Real Accounts – Assets

Personnel Account – All accounts of third Party Eg : Buyer ,Seller

Nominal Accounts – Income account , Expense account, Profit account and Loss account

Golden Rules of Accounting are as follows

Real accounts – Debit What Comes in Credit What goes out

Personnel account – Debit the receiver and Credit the giver

Nominal Accounts – Debit all expenses and losses and Credit all Income and Gains