Golden Rules of Accountancy

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The golden rules of accountancy are basic principles that guide the recording of financial transactions.

The first golden rule is the Personal Account rule, which states that all personal accounts are debited for the receiver and credited for the giver.
The second golden rule is the Real Account rule, which states that all real accounts are debited for what comes in and credited for what goes out.
The third golden rule is the Nominal Account rule, which states that all nominal accounts are debited for expenses and losses, and credited for incomes and gains.
These rules help ensure accurate and consistent recording of financial transactions.
For example, if a company receives cash from a customer, the Personal Account rule would require debiting the customer's account and crediting the cash account.
If a company purchases inventory, the Real Account rule would require debiting the inventory account and crediting the cash or accounts payable account.
And if a company incurs an expense, the Nominal Account rule would require debiting the expense account and crediting the cash or accounts payable account.

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Excel tally is the best accounts

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3 golden rule of accounting

Persnol real and nominal.

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