3 Golden Rules Of Accounting For Every Accountancy Student
By Anshika Verma24, Apr 2024 05:00 PMjagranjosh.com
What is Accounting?
Recording, categorising, and summing financial transactions for a company is known as accounting. Check out the golden rules of accounting that every accountancy student must know.
Golden Rules of Accounting
The guidelines provided by the Golden Rules of Accounting make it easier to determine which accounts should be credited and which should be debited.
Types of accounts
According to golden rules of accounting there are three accounts that is personal account, real account, and nominal account.
Debit all expenses and losses, credit all income and gain
Let's say you paid Rs 5,000 for items from firm XYZ. According to the golden rule, you must incur an expense of Rs 5,000, so you must debit the expense and credit the income in the company accounts.
Debit the receiver, credit the giver
A company called PQR purchases items from company ABC at Rs 10,000. The accountant will credit business ABC and debit the company's purchasing account in the PQR financial records.
Debit what comes in, credit what goes out
Assume you purchased machinery for Rs. 1,000,000 from a supplier. The machinery account will be debited because the machinery will be arriving. The cash account will be credited.
यूपी के इन 10 यूनिवर्सिटी में एडमिशन मिलने से बदल जाएगी किस्मत