What are the Golden rule of accounting?

Question

Accepted Answer

The Golden rules of accounting are basic principles that guide the process of recording financial transactions.

The Golden rules include: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.
These rules help maintain the balance in the accounting equation: Assets = Liabilities + Equity.
For example, when a company receives cash from a customer, the cash account is debited (increased) and the accounts receivable account is credited (decreased).

Accepted Answer

The three golden rules of accounting are (1) debit all expenses and losses, credit all incomes and gains, (2) debit the receiver, credit the giver, and (3) debit what comes in, credit what goes out.

What are the Golden rule of accounting?

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