Journal rules of accounting balance sheet profit and loss accounts

Question

Accepted Answer

Journal rules of accounting ensure that balance sheet and profit and loss accounts are accurate and in compliance with accounting standards.

Journal entries must follow the double-entry system, where each transaction affects at least two accounts.
Debits must equal credits in every journal entry to ensure the accounting equation (Assets = Liabilities + Equity) remains balanced.
Balance sheet accounts represent the financial position of a company at a specific point in time, while profit and loss accounts show the financial performance over a period.
Accrual accounting principles require revenue to be recognized when earned and expenses to be recognized when incurred, regardless of when cash is exchanged.
Closing entries are made at the end of an accounting period to transfer the balances of temporary accounts (such as revenue and expenses) to permanent accounts (such as retained earnings).

Accepted Answer

3 golden rule of accounting there are real account personal account and nominal account

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