Question

Explain golden rules of accounting with example

Answer 1

Three golden rules of a/c ing are
PERSONAL A/C
-debit the receiver
-credit the giver
eg:- all the a/c s with names such as Ram a/c, Ganesh a/c, etc
Artificial personal such as bank a/c and any other bodies other than humans
representative personal such as prepaid and payable expenses

Real A/C
-debit what comes in
-credit what goes out
Eg- cash a/c, machinery, furniture and all other assets comes into this

NOMINAL A/C
-debit all expenses and losses
-credit all incomes and gains
Eg- salaries, wages, electricity bills, discount allowed, discount received, commissions, depreciation etc;
as mentioned above, all expenses &losses and all incomes &gains comes under this

Answer 2

Answer:

According to the double entry system of bookkeeping, there are three types of accounts that help you to maintain an error-free record of your journal entries. Each account type has a rule to identify its debit and credit aspect called the Golden Rule of Accounting. The accounts are:

• Personal Accounts

• Real Accounts

• Nominal Accounts

Explanation: