What is Real Account of Golden Rule

Question

Accepted Answer

Real Account of Golden Rule is a principle in accounting that states all assets have a debit balance and all liabilities have a credit balance.

Real Account of Golden Rule is based on the principle of double-entry bookkeeping.
Under this rule, all assets are recorded on the debit side of the balance sheet.
Liabilities, on the other hand, are recorded on the credit side of the balance sheet.
This rule helps maintain the fundamental accounting equation: Assets = Liabilities + Equity.
For example, if a company purchases a new computer (an asset) for $1,000, it will be recorded as a debit entry in the computer account.
Similarly, if the company takes a loan (a liability) of $5,000, it will be recorded as a credit entry in the loan account.

Accepted Answer

Real account of Golden Rule is Dr What comes in and Cr is what goes out

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