Accounts basics

Does any one know who established golden rules of accounts? and what is the basis for these rules?

Replies (3)

It was first codified in the 15th century by the Franciscan Friar, Luca Pacioli.

In deciding which account has to be debited and which account has to be credited, the golden rules of accounting are used. This is also accomplished using the accounting equation: Equity = Assets − Liabilities.

The accounting equation serves as an error detection tool. If at any point the sum of debits for all accounts does not equal the corresponding sum of credits for all accounts, an error has occurred. It follows that the sum of debits and the sum of the credits must be equal in value.

Other details read here

https://In deciding which account has to be debited and which account has to be credited, the golden rules of accounting are used. This is also accomplished using the accounting equation: Equity = Assets − Liabilities. The accounting equation serves as an error detection tool. If at any point the sum of debits for all accounts does not equal the corresponding sum of credits for all accounts, an error has occurred. It follows that the sum of debits and the sum of the credits must be equal in value.

Mr.Saroj will u please elaborate ur opinion of rule are made on the basis of the Equities =Assets -liabilties 

??? How come ..???

Mr ankit i think u have not follwed the link which was i given if u go there ....i m sure u will get all ur quries solved.....

follow this link

https://en.wikipedia.org/wiki/Double-entry_bookkeeping_system

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