Meaning of Golden rules of accounting
What is 3 golden rules of accounting? And how to apply the golden rules in accounting. There are 3 rules in accounting, which help the accountant to book the accounts of any organization or company. In simple words, the Golden Rules are the rules of accounting that help the accountant to enter in his books of accounting. There are many types of business transactions like sales, purchase, payment, receipt, etc., and when their accounting is done in tally, then based on these 3 rules, the entry is made by the accountant. Let us know the 3 rules of accounting, with the help of which the accounting of the company or organization is done.
Golden rules of accounting with example
When accounting of a company or institution is done, then always 2 accounts are affected, in which one account has to be debited and the other account has to be credited. But before going about the golden rules of accounting, it is necessary to know that what is called debit and credit in accounting. For this, first of all, you should read the debit and credit rules. I will show you some such examples below which are always debited and credited.
Accounts to be debited in accounting
2. Bill payment (If any bill payment has been made then the expenditure is debited.
3. Recipient (The person receiving will always be debited.
4. When money is deposited in the bank, the bank will be debited.
Accounts to be credited in Accounting
1. income ( direct and indirect )
Types of accounts in accounting
- Personal account
- Real Account
- Nominal account
First of all, let us see what is the rule for which account, so that we will not have any problem in understanding.
1. Personal account:-In this account we always debit the payee.( Debit the receiver )
And we give credit to the giver (credit the giver)
2. Real Account:- Debit the item which is coming into business (Debit what comes)
Will credit what is going out of business (credit what goes )
Friends, whenever you make an entry in tally, these rules always come in handy. If you enter the voucher by following these rules, then your entry will not be wrong.
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