#roughnote #accountingbasics
Three Golden Rules of Accounting
One of the most famous and commonly used terms in the field of accounting and finance is “Three golden rules of accounting”. These rules are used to prepare an accurate journal entry which forms the very basis of accounting and act as a cornerstone for all bookkeeping.
They are also known as the traditional rules of accounting or the rules of debit and credit
Easy Interpretation of 3 golden rules of accounting
REAL ACCOUNT
If the item (real account) is coming into the business then – Debit
If the item (real account) is going out of the business then – Credit
PERSONAL ACCOUNT
If the person(or)legal body(or)group is receiving something – Debit
If the person(or)legal body(or)group is giving something – Credit
NOMINAL ACCOUNT
If it is an expense or loss for the business – Debit
If it is an income or gain for the business – Credit
#ROUGHNOTE is an online #Infotainment YouTube channel exclusively in Tamil.
Thanks for watching the video & subscribe our channel. For more videos.
Kindly share your valuable feedback in comments.
Content Copyrights © Rough note
Copyright Disclaimer under Section 107 of the copyright act 1976, allowance is made for fair use for purposes such as criticism, comment, news reporting, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favour of fair use.
Thanks, from Team Rough note
