Golden ruls of accounts

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

The first golden rule is the Debit the Receiver, Credit the Giver rule. This means that when an asset or expense is received, it is debited, and when a liability, equity, or revenue 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 or expenses, it is debited, and when there is a decrease in assets or expenses, it is credited.
The third golden rule is the Debit all expenses and losses, Credit all incomes and gains rule. This means that all expenses and losses are debited, and all incomes and gains are credited.
The fourth golden rule is the Debit the increase in liability and equity, Credit the decrease in liability and equity rule. This means that when there is an increase in liability or equity, it is debited, and when there is a decrease in liability or equity, it is credited.

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