Golden rules of accounting

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Accepted Answer

The golden rules of accounting are fundamental principles that guide the recording of financial transactions.

The first golden rule is the Debit-What-Comes-In and Credit-What-Goes-Out rule, which states that all incoming assets are debited and all outgoing assets are credited.
The second golden rule is the Debit-All-Expenses-and-Losses and Credit-All-Incomes-and-Gains rule, which states that all expenses and losses are debited and all incomes and gains are credited.
The third golden rule is the Debit-The-Receiver and Credit-The-Giver rule, which applies to personal accounts and states that the receiver's account is debited and the giver's account is credited.
These rules ensure that the accounting equation (Assets = Liabilities + Equity) remains balanced and accurate.

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