Question

golden rule of commerce

Answer 1

Hey
Here is your answer
Think you mean golden rules of accounting
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1. Personal Accounts: Those accounts which are relatable to an individual, firm or any type of company

Ex. HDFC Bank A/c or my personal account etc.

The first rule:

#Debit the Receiver, Credit the giver

Ex. If we gave 20000 to Gopal then the journal entry will be

Gopal Dr. 20000
To Cash A/C 20000

Gopal is the receiver so he is debited

2. Real Accounts: The accounts of all those things which are property of the business and whose value can be measured in the terms of money are called real accounts

Ex. Furniture, Machinery, Cash etc.

The second rule:

#Debit what comes in, Credit what goes out

Ex. If Machinery is bought for 50000 Rs. Then the entry will be

Machinery A/C Dr. 50000
To Cash A/C 50000

(Machinery is coming to us so it is debited and cash is going out so it is credited in accordance to the rule)

3. Nominal Accounts: Those accounts which are related to gains - income and loss - expenses are called nominal accounts

Ex. Salary, Commission, Insurance etc.

The third rule

#Debit all expenses and losses, Credit all income and gains

Ex. If we paid salary 20000 Rs. Then the entry will be

Salary A/c Dr. 20000
To Cash A/c 20000

(Here we are paying salary so it is expense for us therefore it is debited)

Let's take another example

Ex. If 3000 is received for commission then entry will be

Cash A/c Dr. 3000
To Commission A/c 3000

(Here we are earning commission, it is income for us and according to rule income is credited so cash will be debited)

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Hope this helps :-)

Answer 2

Answer:

Learn in detail Golden rules of accounting