Hi Seniors,
What is the basic 3 rules of Accounting?
Regards,
Rajeev
Hi Seniors,
What is the basic 3 rules of Accounting?
Regards,
Rajeev
do you mean the golden rules of accounting...
see in 11th class accounts book dear.
oh gosh!! :-)
1. for personal accounts
debit- the receiver n credit- the giver
2. for real accounts
debit- what comes in n credit- what goes out
3. for nominal accounts
debit- all expenses/losses n credit- all incomes/ gains
I agree with Saurabrh. There are mainly three types of accounts.
PERSONAL ACCOUNTS
REAL ACCOUNTS
NOMINAL ACCOUNTS
In PERSONAL ACCOUNTS You have to debit the receiver of benefit and Credit the giver of benefit
In REAL ACCOUNTS You have to debit whatever comes in and credit whatever goes out.
In NOMINAL ACCOUNTS You have to debit the expenses and credit the Incomes/Gains.
If you want I shall explain with examples.
according to accounting dictionary:-
GOLDEN RULES OF ACCOUNTING are:
1. Debits ALWAYS EQUAL Credits;
2. Increases DO NOT NECESSARILY EQUAL Decreases; and,
3. Assets - Liabilities = Owner's Equity (The Accounting Equation).
Dear all sir i think irrespective of level of question we should first of all respect the question and then try to answer it otherwise it will de motivate the person who is asking the question. So it is not the fact that the question is of 11 standard but whether we are aware of those basic principle of accounting. Sorry my intention is not to heart any one.
Saurabh is correct.
PERSONAL ACCOUNT
Debit the receiver & Credit the giver
REAL ACCOUNT :-
Debit what comes in & Credit what goes out
NOMINAL ACCOUNT:-
Debit all expenses and losses and credit all the incomes and gains
There are three golden rules of Accounting wise -
1. Personal A/c - dr is a receiver cr is a giver
2.Real A/c and - dr what comes in and cr what goes out
3. Nominal A/c - dr all expenses/losses cr all income/gain
PERSONAL ACCOUNT
Debit the receiver & Credit the giver
REAL ACCOUNT :-
Debit what comes in & Credit what goes out
NOMINAL ACCOUNT:-
Debit all expenses and losses and credit all the incomes and gains
RIGHT BATUL
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