What are the golden rules of accounting?

Question

Accepted Answer

The golden rules of accounting guide the recording of financial transactions, ensuring accuracy and consistency.

1. Debit what comes in, credit what goes out: This rule applies to personal accounts. For example, when a company purchases equipment, it debits the equipment account.
2. Debit all expenses and losses, credit all incomes and gains: This rule applies to nominal accounts. For instance, when a company earns revenue, it credits the revenue account.
3. Debit the receiver, credit the giver: This rule applies to real accounts. For example, when a company pays cash to a supplier, it debits the supplier's account and credits the cash account.

Accepted Answer

As per real acc debit what comes in credit what goes out as per personal account debit the receiver credit the giver as per nominal account debit all expenses and losses  credit all incomes and gains

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What are the golden rules of accounting?

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