there are 3 types of accounting principals
1. personnel accoumt:- debit the receiver and credit the
giver,
2. real account:- debit what comes in and credit what goes
out.
3. nominal account:- debit all expenses and losses and
credit all gains and incomes
accounting is treated by some expert as science.science is
based on certain laws n principles. so accounting
principles are some rules or norms of accounting, on which
whole accounting is based.
ex. of accounting principles are business entity concept,
money measurement concept, cost concept, double entry
concept etc
Accounting Principal are those set of standard that is use
by the accountant worldwide while recording accounting
transaction.
Principals divide into two parts.
1- Accounting Concept
2-acounting convension
Personal,Real,Nominal are not principles of accounts.
They are types of accounts are called golden rules.
As per Accounting standard 1 following are principles of
accounts basically on which financial statements are
prepared.
1.Going concern.
2.Accuracy.
3.Consistancy.
maintaining the accounts
eg:daybook,bankbook,salesandpurchase account,etc there
are types of accounts 1.personial:debit recieves credit
gives
2.real:debit comes out credit goves
out
3.nominal:debit expenditure,loss credit
profit
Site Map
