Question { Patni, 38088 }

what are the golden rule of accounting.

Answer

1. Debits always equal credits
2. Increases do not necessarily equal decreases and,
3. Assets - liabilities = owner's equity (the accounting
equation).

and


There are three accounts
1. Personal
2. Real
3. Nominal

The three golden rules are
1. personal Account
Debit the receiver & Credit the giver

2. Real Account
Debit what comes in & credit what goes out

3. Nominal Account

Debit the expenses & Losses & Credit the Income & gain