What is golden rule of accounting?

Question

Answer

1). Debit the receiver and credit the giver.
2). Debit what comes and credit what goes out.
3). All losses and expenses are debit and all income and gain are credit.

Answer

1- Personal Account: Dr the receiver nd Cr the giver .

2- Real Account : Dr what's come in Cr what's goes out.

3- Nominal Account : Dr all losses nd expense nd Cr all incomes nd gain.

Answer

There are three golden rules of accounting :―

1.Personal Accounts :―The accounts which related to an individual, firm, company or an institution are called personal accounts.

◼️Rule No.1:―'Debit the receiver and credit the giver.'

[Ex ] :―Paid ₹ 2000 to Hari..... Hari a/c. Dr. 2000 To cash a/c. 2000( Hari's account will be debited in the entry as he is the receiver of cash.And the account of cash will be credited,as cash has gone out.)

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

◼️ Rule No.2:― 'Debit what comes in and credit what goes out.'

[ Ex ] :―If Furniture for ₹10000 has been purchased... Furniture a/c. Dr. 10000 To cash a/c. 10000(Furniture accounts should be debited and cash accounts should be credited according to the rules.)

3.Nominal Accounts :― These accounts include the accounts of all expenses and incomes.

◼️ Rule No.3 :―'Debit the expenses and losses and credit incomes and gains.'

[ Ex ] :―Paid ₹20000 for salaries... Salary a/c. Dr. 20000 To cash a/c. 20000(Salary should be debited and the expenses and cash should be credited and the incomes.)

Answer

Personal acc.Nominal acc.Real. Acc.

Answer

According to golden rule there are three types of a/c   1) real a/c which consist all assets rule for this a/c is Dr. What's come in................ Cr. What's goes out   2) nominal a/c which consist all profit and loss , rule for this a/c is Dr. All loss and expenses...............Cr. All profit and incomes  3) prsnl a/c which consist all liability rule for this a/c is Dr. The receiver .................Cr. The giver

Answer

Personal a/c _ dr the receiver _ cr the giverReal a/c_ dr what comes in _cr what goes outNominal a/c _ dr all expenses and losses_cr all incomes and gains

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