What are the golden rules of accounting

Question

Accepted Answer

The golden rules of accounting are fundamental principles that guide the recording and reporting 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 ensure that every financial transaction is accurately recorded and classified in the appropriate accounts.
For example, if a company receives cash from a customer, the cash account (real account) will be debited, and the customer's account (personal account) will be credited.

Accepted Answer

If it is real account - debit what comes in and credit what goes out
Personal account - debit the receiver credit the giver
Nominal account - debit all expenses and losses credit all incomes and gains

What are the golden rules of accounting

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