What is 3 golden rules of accounting

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The 3 golden rules of accounting are: 1. Debit the receiver, credit the giver. 2. Debit what comes in, credit what goes out. 3. Debit expenses and losses, credit income and gains.

Rule 1: Debit the receiver, credit the giver. This means that when an asset is received, it is debited, and when a liability is given, it is credited.
Rule 2: Debit what comes in, credit what goes out. This means that when there is an inflow of assets, it is debited, and when there is an outflow of assets, it is credited.
Rule 3: Debit expenses and losses, credit income and gains. This means that when there is an expense or loss, it is debited, and when there is income or gain, it is credited.
For example, when a company receives cash from a customer, the cash account is debited (Rule 2) and the accounts receivable account is credited (Rule 1).
Another example is when a company pays rent, the rent expense account is debited (Rule 3) and the cash account is credited (Rule 2).

What is 3 golden rules of accounting

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