Golden rules of accounts

Question

Accepted Answer

Golden rules of accounts refer to basic principles of accounting that should be followed to maintain accurate financial records.

The first golden rule is to maintain proper documentation of all financial transactions.
The second golden rule is to record all transactions accurately and in a timely manner.
The third golden rule is to ensure that all financial statements are prepared accurately and on time.
The fourth golden rule is to maintain confidentiality of financial information.
The fifth golden rule is to ensure compliance with all applicable laws and regulations.
For example, if a company receives payment from a customer, it should be recorded accurately in the accounts receivable ledger and a receipt should be issued to the customer.
Another example is that financial statements should be prepared in accordance with generally accepted accounting principles (GAAP) to ensure accuracy and consistency.
It is important to maintain confidentiality of financial information to prevent unauthorized access or misuse of sensitive data.
Compliance with laws and regulations such as tax laws and financial reporting requirements is crucial to avoid penalties and legal issues.

Accepted Answer

1.Debit is the receiver and credit is the giver.