What is golden rules

Question

Accepted Answer

Golden rules are fundamental principles that guide the recording of financial transactions in accounting.

Golden rules are also known as accounting principles or rules of debit and credit.
There are three golden rules: the Personal Account rule, the Real Account rule, and the Nominal Account rule.
The Personal Account rule states that debit the receiver and credit the giver.
For example, when a company receives cash from a customer, the cash account is debited and the accounts receivable account is credited.
The Real Account rule states that debit what comes in and credit what goes out.
For example, when a company purchases inventory on credit, the inventory account is debited and the accounts payable account is credited.
The Nominal Account rule states that debit all expenses and losses and credit all incomes and gains.
For example, when a company pays rent expense, the rent expense account is debited and the cash account is credited.

Accepted Answer

Golden rules are 3types there are personal account real account and nominal account.

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