Which rules of accounts for using in daily entries?

Question

Accepted Answer

The rules of accounts for daily entries include the principles of double-entry bookkeeping, accrual accounting, and the matching principle.

Double-entry bookkeeping: Every transaction should have equal debits and credits to maintain the balance.
Accrual accounting: Revenue and expenses should be recorded when earned or incurred, regardless of when the cash is received or paid.
Matching principle: Expenses should be matched with the revenue they generate in the same accounting period.
Consistency: The same accounting methods and principles should be used consistently over time.
Materiality: Only significant transactions and events should be recorded.
Prudence: Anticipate losses and expenses, but only recognize gains and revenues when they are realized.
Cost principle: Assets should be recorded at their original cost.
Going concern: Assume the business will continue to operate indefinitely.
Entity concept: The business's financial transactions should be separate from the personal transactions of its owners.
Time period concept: Divide the business's activities into specific time periods for reporting purposes.

Accepted Answer

Three golden rules in accounts. 1. Personal, 2. Real, 3. Nominal.

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