Three golden rules in accounting ?

Question

Accepted Answer

The three golden rules in accounting are the rules of debit and credit, which govern the recording of financial transactions.

The first golden rule is the rule of debit and credit, which states that for every debit entry, there must be a corresponding credit entry of equal amount.
The second golden rule is the rule of personal accounts, which states that debit the receiver and credit the giver.
The third golden rule is the rule of real accounts, which states that debit what comes in and credit what goes out.

Accepted Answer

The three golden rules of Accounting are:-

The first golden rule for personal Accounts is:- Debit the receiver and credit the giver. For example, the receiver is an employee and the giver will be the business.

The second golden rule for Real Accounts is:- Debit what comes in, Credit what goes out. For example, the cash account is a type of asset account, accounts payable is a liability account, and retained earnings is an equity account.

The third golden rule for Nominal Accounts is:- Debit all expenses and Credit all income. Examples include a purchase account, sales account, salary A/C, commission A/C, etc.

Accepted Answer

Yes. This question is for fresher

Three golden rules in accounting ?

Top R.R. Donnelley Accounts Associate interview questions & answers

Popular interview questions of Accounts Associate

Top HR questions asked in R.R. Donnelley Accounts Associate