golden rules of accounting?
how bank earn profit?
Answers were Sorted based on User's Feedback
Answer / ilango
DEBIT THE RECEIVER AND CREDIT THE GIVER( Perosnal account)
DEBIT ALL EXPENSES AND LOSS AND CREDIT ALL INCOME AND GIANS
( Nominal accoutns)
DEBIT WHAT COMES IN AND CREDTI WHAT GOES OUT (Real
BANK EARN INCOME THORUGH INTEREST ON MONEY LENDING AND
OTHER SERVICE CHARGES
|Is This Answer Correct ?||237 Yes||13 No|
Answer / jagdish sherla
There is a 3 golden rules of accounting as follows.
1] Personal Account 2] Real Account 3] Nominal Account
The bank wiill give the loans to customers on interest and
|Is This Answer Correct ?||109 Yes||31 No|
Answer / k. madhusudhan
Answer for - "Golden Rules of Accounting?"
Golden Rules of Accounting:
There are totally 3 kinds of Accounts in Financial
Accountancy. They are
1. Personal Account - relates to name of the person,
organization, institution etc.
2. Real Account - relates to cash, assets.
3. Nominal Account - relates to incomes, expenditures,
losses and gains(profits).
These three kinds of accounts contains 2 rules each,
which are as follows.
1. Personal Account:
Debit "the Receiver"
Credit "the giver"
2. Real Account
Debit "what comes in"
Credit "what goes out"
3. Nominal Account
Debit "all expenses and losses"
Credit "all incomes and gains"
These are the three Golden Rules of Accounting.
Answer for "How Bank Earn Profit?"
Bank earn profits from the interest rates collecting
from various types of loans. i.e., Bank offers less rate of
interest on deposits and makes high rate of interest on
loans and through this bank earn profit.
|Is This Answer Correct ?||64 Yes||4 No|
Answer / geetha
Three Golden rules are as follows;
1) Personal A/c-Debit the Reciever and credit the Giver.
2)Real A/c - Debit what comes in and credit what goes out.
3)Nominal A/c - Debit all expenses and Losses and credit
all Incomes and gains.
And how the Banks earn Profit;
Banks will take the deposits from public with Low rates of
interest and gives the loans by charging high rate of
interest and banks also gives overdraft facility to the
public and on that also they charge high rate of interest.
|Is This Answer Correct ?||32 Yes||1 No|
The main function of banks are accepting deposits from
public and lending the same. The difference in rate of
interest for acquiring deposit and lending loan is called as
"spread" and the same is the main source of income for
banks. Bank also getting income by agency function like
collecting chq, follwing standard instruction and other
|Is This Answer Correct ?||41 Yes||12 No|
Answer / vikas baheti
Golden rule :
1. Receivable are Debit and Payable Are Credit
2. All the expeces and loss are " Debit " and ALl the
profit and income are treat " Credit".
3. All the assets are debit and all the Liablities are
Bank gives a lone and advance to the customer and get a
interest and profit. and any other charge create by the
banker . those are point to souece to earn.
|Is This Answer Correct ?||40 Yes||20 No|
Answer / anand
GOLDEN RULES OF ACCOUNTS:-
1. PERSONAL ACCOUNT = RECEIVER .....dr
2. REAL ACCOUNT = COMES IN ....DR
GOES OUT .....CR
3.NOMINAL ACCOUNT = EXPENSES & LOSSES......DR
INCOMES & GAIN......CR
notes; acording to bank credit means DEPOSITS.
" " debits means WITHDRAW.
BANKS EARN PROFIT THROUGH STOCK MARKETS,USES PUBLIC DEPOSITS
AS SAVING ACCOUNT ,CURRENT ACCOUNT,FIXED DEPOSITS.IT IS
FALLOW THE RULES OF OLD MONEY AND NEW MONEY ROTATED IN MARKETS.
|Is This Answer Correct ?||18 Yes||1 No|
Answer / nnvamshi
Every Debit has a correspondent Credit vice versa.
By Interest on loans.
|Is This Answer Correct ?||47 Yes||31 No|
Answer / sunitha
Real a/c = debit what comes in
credit what goes out
Nominal a/c = debit all expense & losses
credit all income & gains
Personal a/c = debit the reciever
credit the giver
|Is This Answer Correct ?||14 Yes||1 No|
Answer / muhammad amin ashraf
All the bank gives the loan to the customer and it's
turnover is fixed. When the customer did not pay his
instalment they charged interest. interest is their profit.
|Is This Answer Correct ?||16 Yes||28 No|
If we follow accrual basis of accounting....will it be in conflict conservatism concept?
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