WHAT ARE GOLDEN RULES OF ACCOUNTS

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The golden rules of accounts are fundamental principles that guide the recording of financial transactions.

The first golden rule is the Debit the Receiver, Credit the Giver rule. This means that when an asset is received, it is debited, and when an asset is given, it is credited.
The second golden rule is the Debit what comes in, Credit what goes out rule. This means that when there is an increase in assets, it is debited, and when there is a decrease in assets, it is credited.
The third golden rule is the Debit all expenses and losses, Credit all incomes and gains rule. This means that expenses and losses are debited, and incomes and gains are credited.

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